Announced in Budget 2025-26 and launched by SIDBI on its foundation day, 25 May 2026, the Micro Enterprise Credit Card (ME-Card) is a revolving credit limit of up to ₹5 lakh for Udyam-registered micro enterprises, with 75% of the bank’s exposure guaranteed by the government. Banks have since had their rollout target doubled to 20 lakh cards this financial year, which is why your branch may be keener than usual.
What it is
- A revolving limit: draw what you need, repay, draw again. Interest runs only on the amount used, unlike a term loan.
- Up to ₹5 lakh, set by the bank on your statements and returns.
- Issued to Udyam-registered micro enterprises — the entity, not the individual — proprietorships included.
- Collateral-free for the borrower; the 75% guarantee is what makes the bank comfortable.
What it is not
It is not start-up finance: the unit has to be running with a bank track record. It is not a subsidy: the interest is the bank’s own rate. And it is not a personal credit card: the limit sits on the business, and how you use it feeds the business’s credit history, which matters when you outgrow ₹5 lakh.
ME-Card vs Mudra vs cash credit
| Route | Shape | Ceiling | Best for |
|---|---|---|---|
| ME-Card | Revolving card limit | ₹5 lakh | Stock, supplier payments, month-to-month gaps |
| Mudra (Kishore/Tarun) | Term loan or CC | ₹20 lakh | Equipment, a lump-sum need, a new activity |
| Cash-credit account | Revolving bank limit | Bank-assessed | Units with audited books and stock statements |
Who qualifies
- Micro under the current MSME limits — investment up to ₹2.5 crore and turnover up to ₹10 crore — with a Udyam certificate.
- A running business with six to twelve months of bank statements; GST returns if registered.
- A promoter whose personal credit report is clean — the bank reads it even though the card is on the business. A settled or written-off loan is the usual reason for a decline; check with our free credit health check first.
How to apply
- Register on Udyam if you have not — free, same day, Aadhaar and PAN.
- Keep six months of business banking in one account; route sales through it.
- Pull your credit reports and dispute anything wrong before you apply.
- Apply at your bank branch or through the JanSamarth portal; carry Udyam, KYC, statements and GST returns.
- Use the limit and clear it monthly for the first year — that is what gets the limit raised and the next facility sanctioned.
Sources: Union Budget 2025-26 speech; SIDBI launch, 25 May 2026; Ministry of Finance rollout update. Scheme terms are set by the issuing bank; general information, not financial advice.
