What was announced
In the Union Budget 2025-26 the Finance Minister announced customised credit cards with a ₹5 lakh limit for micro enterprises registered on the Udyam portal, with 10 lakh cards to be issued in the first year. The idea is to give the smallest businesses a quick line of credit for day-to-day expenses.
Banks offering it
Banks have since launched cards under this scheme. For example, SBI lists a Micro Credit Card for Udyam-registered micro enterprises with limits from ₹50,000 to ₹5 lakh, and IDFC FIRST Bank offers a RuPay Micro Enterprise Credit Card of up to ₹5 lakh. Limits, fees and conditions differ by bank, and some banks offer the card only to their existing customers, so check the bank's own page.
Who can get it
- A micro enterprise with a valid Udyam registration (free, on the government's Udyam portal: how to register)
- A bank account and a business track record the bank accepts
- The final limit depends on the bank's assessment
Using it well
- Use it for business spends: stock, supplies, small repairs, bills.
- Pay the full amount due within the interest-free period. Interest on an unpaid credit card balance is much higher than on a term loan.
- Keep personal and business spends apart; it makes your books, and your next loan application, cleaner.
Card or loan?
A card suits short, revolving needs. For a one-time larger need (machinery, a new outlet, a big order), a business loan with fixed EMIs is usually cheaper. Our guide on working capital vs term loan explains the difference.
Oxon Fintech is not a government agency and does not take applications for this scheme. Apply on the official portal or at a bank branch, and be careful of anyone who asks for money to get a scheme loan approved. Scheme rules change; check the official site before you apply.