Credit card program for MSMEs coming soon

New Delhi: Government is giving final form to a Merchant credit card (MCC) Program for traders and one Vyapar . credit card (VCC) for microunits, in a move to give them more credit support, officials said. Although VCC can offer interest-free credit terms of up to 50 days and coverage around 85% under the Credit Guarantee Fund for Micro Units, MCC program may offer loans to merchants at subsidized interest rates, similar to the Kisan Credit Card.

“The MCC program will provide flexibility for banks to tailor their products to policies approved by the board,” said a government official. Development of handicrafts Bank of India The official added that they are working on the details for the VCC, which aims to encourage entities to register on the Udyam Portal.

Early Credit Card Program for MSMEs

Another official said the idea is to incentivize nano-MSMEs such as street vendors and kirana, and help them participate in the formal financial system. “It is necessary to have uniformity of card benefits for each group of subjects MSMEs as existing MSME tokens differ in their terms,” ​​he added.

ET reported in April that a congressional standing committee on finance headed by Jayant Sinha advertised the credit card offering for MSME entrepreneurs on the Kisan Credit Card lines.

The government plans to provide short term credit with low interest rates for MSMEs to meet their working capital needs to ensure a steady credit flow in the context of a slowing global economy. There are 63 million MSMEs in the country, providing 110 million jobs.


Goz News: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably.

Related Articles

Back to top button