Business Credit Cards : There is an important and happy news for small businessmen. Because now small business owners are getting business credit card. A few days ago CAT had met Prime Minister Narendra Modi. He had requested them to issue business credit card to small businessmen. His request was accepted by the Standing Committee of the Ministry of Finance.
According to reports, the business credit card may be launched nationwide and the complete details will be with SIDBI. As SIDBI will be the nodal agency for Business Credit Cards.

Business Credit Cards: There are crores of Small Scale Industries in the Country

The committee suggested that the banks should be given the responsibility of deciding how much credit to give to MSMEs. Also, in addition to taking loans from these credit cards, entrepreneurs should be given the facility to purchase materials or necessary equipment.

Apart from this, the committee has also advised to increase the credit limit according to the increase in income from the business. The committee suggests that entrepreneurs also get loyalty points, rewards, cashback and other benefits through credit cards.

At the same time, talking about the statistics, there are 6.30 crore micro and 3.31 lakh small scale enterprises in the country. There are more than 5000 registered medium scale enterprises in the country. But less than 1.5 crore MSMEs receive loans from banks.

This limit will be from Rs 50 thousand to Rs 1 lakh: Business Credit Cards

It is said that the committee has made a proposal in this regard only after discussions with the Ministry of Finance and various banks. The committee has suggested keeping the card’s credit limit between Rs 50,000 and Rs 1 lakh.

This would mean that if a small business needs a loan of up to Rs 1 lakh to move forward, they can get this loan from a bank without any hassle.It is proposed that only those small businessmen and MSMEs will get this business credit card, who have registered on the MSME Ministry’s Enterprise Portal. Because many industries are still not registered in this portal. But it is expected that more and more people will connect with the portal by launching this card.

The Bank will Decide the Loan Amount

According to the report, there are a total of 6.30 crore small scale industries and 3.31 lakh small industries in the country. The committee has recommended that the bank will decide how much loan will be given to a businessman or entrepreneur. Also, he says that loyalty points, rewards, cashback and other benefits should also be given to merchants through credit cards. The business credit card will link all the credit schemes available for MSMEs together.

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