New Year Boost: Govt to offer Rs 5 lakh credit cards to 10 lakh MSMEs

• Government to launch a new credit guarantee scheme for MSMEs starting January.
• Scheme includes a micro credit card with a Rs. 5 lakh loan limit to ease financial challenges.
• Aims to reduce MSME loan costs by up to 50% by linking with existing credit guarantee frameworks.
• Designed to improve cash flow for MSMEs facing delayed payments and provide short-term credit.
• Target set to issue 10 lakh cards in the first year, offering lower interest rates than regular credit cards.

Why It Matters: New credit cards offer MSMEs crucial financial relief and improved cash flow.