Top Credit Cards for MSMEs in 2024

Micro, Small, and medium Enterprises (MSMEs) play an important role in economic growth and innovation. With the increasing number of MSMEs, card issuers have started offering credit cards specifically tailored for MSMEs. It is important for these enterprises to fulfill their credit requirements by making reasonable choices, like selecting appropriate credit cards. These cards allow individuals to meet MSMEs instant credit needs and help them seek financial efficiency and growth. Here are some of the top credit card schemes for MSMEs that can help them achieve and maintain financial stability:

Top Credit Cards for MSMEs in 2024

Here is the list of top credit cards for MSMEs offered in India:

1. West Bengal Bhabishyat Credit Card Scheme

West Bengal Bhabishyat Credit Card Scheme (WBBCCS) helps the residents of West Bengal get easy access to credit. This scheme is designed for people who have a low income and limited access to financial services. Eligible residents can apply for this credit card through the official portal of West Bengal. Here are some of the major features that are offered on this credit card for MSME:

Eligibility:

• Indian nationals residing in West Bengal for the past 10 years
• Individuals, including motor transport workers and building and other construction workers, aged between 18 – 55 years
• Only one person from one family is eligible under the scheme, where “family” means self and spouse

Benefits:

• Cardholders will receive Rs. 5 Lakh as a project cost grant
• Extended subsidy of up to 10% on margin money
• Each cardholder can avail a maximum subsidy of Rs. 25,000
• The bank loan is calculated as the project cost minus the government subsidy in the form of margin money

How to Apply:

• Online: register online through the official portal of West Bengal, fill out the application form, and upload supporting documents. The application will be reviewed by the Department of MSME&T, and the card will be issued upon approval.
• Offline: Collect the application form from the Department of MSME&T and submit it along with the required documents to the MSME&T district office. The department will verify your details and issue a credit card.

2. Union Bank MSME Credit Card

Union Bank MSME Credit Card is designed to offer a Fund Based Working Capital limit to MSMEs so that they can meet their business-related financial requirements. With this, individuals can get 20% of the sanctioned FB WC limit with a minimum of Rs. 20,000 and a maximum of Rs. 2 Lakh. Below mentioned are the details regarding this MSME Credit Card:

Eligibility:

• The applicant must be classified as an MSME
• The applicant must be an existing borrower with a sanctioned FB WC limit (CC/OD) of above Rs. 1 Lakh
• The applicant’s account should not be under any stress category or overdue for review/renewal at the time of sanction of the credit card
• The applicant’s CIC score should be a minimum of 700/-1 (in the case of customers with no credit history)

Benefits:

• 20% of the sanctioned Fund Based Working Capital limit
• Each individual can avail a minimum sanctioned limit of Rs. 20,000 and a maximum limit of Rs. 2 Lakh

3. Baroda Laghu Udyami Credit Card

Baroda Laghu Udyami Credit Card is designed to meet the credit requirements of small businesses, village industries, small units, self-employed persons, etc. Individuals associated with the bank can apply for this credit card and avail credit limit of up to Rs. 10 Lakh. Here are some of the major features of this credit card:

Eligibility:

• All existing customers under MSE sectors associated with the bank for the last 3 years satisfactorily and enjoying loan/operative limit up to Rs. 10 Lakh

Benefits:

• Credit limit of up to Rs. 10 Lakh
• The credit limit fixed under this scheme will be valid for 3 years

4. SBI SME Credit Card

SBI SME Credit Card allows small business owners or retail traders to meet their credit requirements, including shop purchases. With this credit card, individuals can fulfill their credit requirements either through cash credit or a term loan of up to Rs. 10 Lakh. Some of the other important details regarding the same are as follows:

Eligibility:

• Individuals with a track record of at least 2 years with the bank
• Small industrial units, micro enterprises, small retail traders, msme units, professionals & self-employed persons, small business enterprises, transport operators (srto), etc.

Benefits:

• Cash credit/ Term Loan of up to Rs. 10 Lakh
• Repayment period validity of up to 3 years

How do MSMEs credit cards benefit users?

Credit cards designed for MSMEs offer a range of benefits, like anytime digital payments, instant loans, interest-free period, and carry interest rate similar to the rate charged for loans. Moreover, some cards offer flexibility by allowing users to opt for either a loan or cash credit during emergencies, providing a dual-choice scenario. MSME borrowers will also be able to enjoy an interest-free credit period of up to 50 days, depending on the credit card. These cards also offer an EMI facility to customers for their business-related expenses, including shop purchases. Furthermore, MSMEs can also get specially curated business services through these cards, which can help them meet their credit requirements and expand their businesses.