Vyapar Credit Card: Many benefits will be available on this credit card, know here...


Small businesses can be offered a credit card with a limit of Rs 1 lakh. This will happen if the government's plan to universalize credit flows becomes successful. This credit card will be given by the Small Industries Development Bank of India (SIDBI) to the Micro, Small and Medium Enterprises (MSMEs) registered on the Udyam portal. There are many benefits to be found in this credit card. Let's know what...


The new card will be like Kisan Credit Card
The card will link all the credit schemes available for MSMEs together. These include low-interest rates. Also, up to Rs 1 lakh on this card provided to the beneficiaries of the Kisan Credit Card (KCC) will be available without pledging anything. It may be branded as a business credit card (VCC), as suggested by the Standing Committee on Finance in a recent report.

The initial loan limit is Rs 50,000
It will be offered to MSMEs to meet their business loan needs with provisions for enhanced credit based on their financial performance and credit servicing capabilities. The starting limit can vary between Rs 50,000 and Rs 1 lakh. The rules for assigning CIBIL ratings for MSMEs may also be changed to allow better and updated data flow to rating agencies, thereby providing better ratings to the sector.

Banks are ready
Once MSMEs are registered on the enterprise, other targeted programs based on industry, geography, and size can also be created. The MSME database can also be used by states and other stakeholders to help small businesses. Many banks are already providing credit cards to MSME borrowers including Pradhan Mantri Mudra Yojana.


Ease of formal credit
It will also provide easy and convenient access to formal credit to MSMEs. It is expected that VCC will provide short-term loans at low-interest rates to meet the working capital requirements of MSMEs.

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