Micro, Small, and Medium Enterprises (MSMEs) are the backbone of the Indian economy. To cater to their financial needs, MSME credit cards have become a crucial tool. In 2025, MSME credit cards come with new features and customized financial solutions.
What is an MSME Credit Card?
It provides quick credit access, flexible repayment options, and attractive reward schemes. In 2025, these credit cards will evolved with advancements in digital banking and changing business needs.
Benefits of MSME Credit Cards
Instant Working Capital – Provides immediate funds to businesses for managing daily expenses.
Lower Interest Rates – Compared to traditional loan options, MSME credit cards offer lower interest rates.
Better Cash Flow Management – Helps businesses manage their cash flow efficiently.
Improved Credit Score – Timely repayments improve business credit scores, making it easier to secure larger loans in the future.
Exclusive Offers and Discounts – Cardholders receive special discounts and reward points on travel, fuel, office supplies, and digital advertising.
Seamless Digital Payments – These cards now work seamlessly with UPI and other digital payment platforms.
How to Apply for an MSME Credit Card?
Choose a Bank or NBFC – Several banks and non-banking financial companies (NBFCs) offer MSME credit cards.
Apply Online – Most banks now provide online application facilities.
Submit Required Documents – Business registration certificate, bank statements, IT returns, and KYC documents are needed.
Credit Score Check – Banks evaluate your credit score before approving the application.
Approval and Issuance – Once approved, the bank issues the credit card for your business.
Top Banks Offering MSME Credit Cards in India
1.Union Bank MSME Credit Card:
Union Bank of India offers the MSME Credit Card to provide seamless access to working capital for micro, small, and medium enterprises. Designed to support businesses with flexible credit solutions, this card ensures that MSMEs can efficiently manage their cash flow and day-to-day expenses.
Key Features & Eligibility
MSME Classification: The business unit must be classified as an MSME as per the revised definition and should have a valid Udyam Registration.
Existing Borrower Requirement: The applicant must be an existing borrower of Union Bank with a sanctioned fund-based working capital limit (CC/OD) above ₹1 lakh.
No Stress Accounts: The business account should not be classified under the stress category and must be up-to-date for review/renewal at the time of sanctioning the MSME Credit Card.
Minimum Credit Score: The CIBIL/CIC score of the individual
2.SBI MSME Credit Card:
State Bank of India (SBI) offers the MSME Credit Card, specially designed to support small businesses, retailers, professionals, and self-employed individuals. This credit card provides a seamless way to manage working capital, offering flexible loan amounts and repayment options tailored to MSME needs.
Key Features & Benefits:
Target Group: Micro enterprises, small business units, SBF, retail traders, village industries, professionals, and self-employed individuals.
Available Facilities: Cash Credit and/or Term Loan.
Loan Amount: Up to ₹10.00 lakh.
Interest Rate:
- Based on borrower rating/external rating or as per the bank’s latest guidelines.
- Linked to EBLR for MSMEs and 6-month MCLR for non-MSMEs.
Borrower’s Margin/Contribution:
- Up to ₹50,000 – Zero margin.
- ₹50,001 to ₹10 lakh – 10% margin.
Repayment Terms:
- Cash Credit: Payable on demand, valid for three years, subject to annual review.
- Term Loan:
- Below ₹5 lakh: Maximum 5 years, including a moratorium of up to 6 months.
- ₹5 lakh & above: Maximum 7 years, with a moratorium of up to 12 months (interest to be paid during the moratorium period).
Processing Fees: As per SBI’s latest guidelines.
3.Baroda Laghu Udyami Credit Card:
Small businesses, artisans, retail traders, and self-employed professionals often require quick access to credit for managing daily operations and expanding their businesses. The Baroda Laghu Udyami Credit Card is designed to provide easy and flexible financial assistance to micro and small enterprises (MSEs). This card offers customized credit solutions with competitive interest rates, making it a valuable financial tool for entrepreneurs.
Key Features & Benefits
Designed for Small Business Owners – Ideal for micro enterprises, small retailers, village industries, artisans, professionals, and self-employed individuals.
Loan Limit – Businesses can avail of a maximum credit limit of ₹10 lakhs, helping them meet operational and expansion needs.
Flexible Tenure – The credit limit under this scheme is valid for three years, with an annual performance review to ensure smooth financial operations.
Competitive Interest Rates – The interest rate is directly linked to the repo rate (BRLLR), ensuring transparency and affordability.
Minimal Margin Requirements:
- Up to ₹50,000 – No margin required.
- ₹50,001 to ₹10,00,000 – A 25% margin is applicable.
Simplified Process – The application process is hassle-free, with minimal documentation and quick approvals.
Conclusion
MSME credit cards in 2025 can be a game-changer for small businesses, providing not just instant capital but also strengthening their financial position. If you own an MSME, now is the perfect time to take advantage of these credit cards and elevate your business to new heights.
Have you applied for an MSME credit card? Let us know in the comments below!
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