MSME Credit Card: How To Register At Udyam Portal To Get Credit Guarantee Scheme Benefit?

MSME Credit Card: In a major boost to the micro, small and medium enterprises, the central government has increased the credit limit for MSME enterprises. Registered micro enterprises can get the benefit of the increased limit of Rs 5 lakh to Rs 10 lakh via credit cards.

The government has planned to issue nearly 10 lakh credit cards in the first year of the launch of the scheme. The facility of MSME credit cards was announced by Finance Minister Nirmala Sitharaman in Union Budger 2025 and was considered as a milestone achievement of the government for boosting MSME business in India.

MSME Credit Card Scheme: What Is It?

The scheme was announced by Finance Minister Nirmala Sitharaman during her latest Union Budget 2025 speech. While declaring the credit card scheme, Sitharaman also mentioned that over one crore MSMEs are registered with the government and they employee more than 7.5 crore people in their business.

The MSME sector plays a crucial role in the manufacturing sector, where it contributes to generate around 36% of the nation's manufacturing. They also play crucial role in boosting Indian exports. As a manufacturing hub, MSME sector exports around 45% of the total exports of India.

MSME Credit Card Scheme: How To Apply?

The government is yet to notify clear guidelines on MSME credit card. To avail the benefit, it is mandatory for MSME owners to register at the official website Udyam portal, ie https://udyamregistration.gov.in/

Here are the important steps to follow for MSME registration.

-Visit the official website of Udyam portal for registration.

-Register yourself as Udyam MSME with Aadhaar verification with the help of one time password (OTP).

-Provide other mandatory details to complete the registration.

-Applicants will get a permanent registration number after completion of the registration.

-MSME registration is free of cost and doesn't require extensive documentation. According to Udyam registration website, people can register themselves only with Aadhaar details.

-As per the website, those who have EM-II or a UAM registration issued by any authority under the Ministry of MSME will have to re-register themselves.

-No MSME can file for more than one Udyam registration. Doing so may attract serious legal repercussions.

About MSME Credit Guarantee Scheme

The credit guarantee scheme for Micro Small & Medium Enterprises (MSME) began in 2000. The credit guarantee scheme is run by the Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE). According to Ministry of MSME, the scheme provides a maximum collateral free credit support of up to Rs 5 crore to MSEs.

Additionally, the central government has increased the credit guarantee ceiling for MSMEs from Rs 5 crore to Rs 10 crore under Credit Guarantee Scheme (CGS) (for banks). As per the Union Budget 2025-26 announcement, startups will see their guarantee cover double from Rs 10 crore to Rs 20 crore, with a reduced fee of 1% for loans in 27 priority sectors. Exporter MSMEs will benefit from term loans up to ₹20 crore with enhanced guarantee cover.

Additionally, the government has strengthened its support fo MSMEs by scaling operations and ensuring better resources for them. To do this, the government in its Budget 2026 announcement had increased their investment and turnover limits for classification by 2.5 times and 2 times, respectively. This is expected to improve efficiency, technological adoption, and employment generation.