Government doubles ME-Card rollout to expand credit access for MSMEs
Originally, the government had set a goal of issuing one million ME-Cards in FY26. The revised directive now doubles that figure.
The Centre has directed banks to double their rollout target for Micro Enterprise (ME) Cards this year, in a move aimed at accelerating working capital access for India’s micro, small and medium enterprises (MSMEs), the Economic Times reported.
Originally, the government had set a goal of issuing one million ME-Cards in FY26; the revised directive now doubles that figure to widen the credit access for MSMEs across the country.
The report also suggests that a model scheme for micro credit cards has already been finalised, and at present, banks are in the process of making assessments of eligible borrowers for extending the facility.
The ME-Card, first announced by Union Finance Minister Nirmala Sitharaman in the Union Budget 2025–26, is designed as a customised credit instrument for MSMEs registered on the Udyam portal. It offers benefits such as low-interest rates, credit guarantee cover, and simplified digital onboarding.
Each ME-Card comes with a credit limit of up to Rs 5 lakh, enabling small enterprises to meet working capital needs efficiently. The government projects the initiative could unlock Rs 1.5 trillion in additional credit over the next five years.
Export-oriented MSMEs are also expected to benefit from term loans of up to Rs 20 crore, fostering growth in sectors with high foreign trade potential.
According to the media source, to streamline lending, banks are working on a common loan application form to bring uniformity across MSME credit processes.
The disbursal of credit cards will be entirely digital, relying on simplified assessment models using enterprise revenue data derived from Unified Payments Interface (UPI) transactions, bank statements, and the Account Aggregator (AA) framework.
By pushing for faster and more transparent credit disbursal through ME-Cards, the government aims to strengthen financial inclusion, reduce procedural bottlenecks, and empower micro enterprises to scale sustainably in the formal credit landscape.
Edited by Jyoti Narayan