Credit Cards for MSME in 2025

In 2025, micro, small, and medium enterprises (MSMEs) are increasingly turning to credit cards as a vital financial tool to manage working capital, simplify expenses, and build business credit. With the government’s latest initiatives and banks rolling out MSME-focused cards, understanding MSME credit card options has never been more important.

Whether you’re looking to apply online for an MSME credit card or searching for the best options in the market, this blog breaks down the top offerings, benefits, and what’s new in 2025—including updates from the Union Budget and innovative schemes for Indian businesses.

Why MSME Credit Cards Matter in 2025

The need for quick, flexible, and tailored financing is at an all-time high. MSME credit cards help small business owners:

• Access instant working capital
• Track and manage business expenses
• Build a separate business credit profile
• Enjoy exclusive rewards and discounts
• Get higher credit limits than personal cards

If you’re seeking advice on business credit cards for MSME, this year’s developments offer more choice and customisation than ever before.

Top MSME Credit Cards in 2025

Let’s look at some of the standout business credit cards available this year:

1. Amazon Axis Bank Credit Card MSME

Axis Bank, in partnership with Amazon, offers an MSME-focused card for Amazon sellers and buyers, featuring cashback on Amazon Business purchases, flexible repayment options, and quick approval for registered MSMEs. You can apply for the MSME credit card online in just a few clicks, making it ideal for e-commerce entrepreneurs.

2. Baroda MSME General Credit Card

The Baroda MSME General Credit Card is a popular choice among small business owners, with simplified documentation and collateral-free credit. Benefits include low-interest rates, insurance coverage, and the ability to use the card for multiple business needs, such as inventory purchases or vendor payments.

Also, check out: Baroda Laghu Udyami Credit Card

This is tailored for micro and small entrepreneurs, providing an easy application process and fast disbursal. The card comes with a moderate credit limit and competitive interest rates, designed to support the smallest businesses.

3. SBI SME Credit Card

The SBI SME Credit Card provides easy overdraft facilities, business-specific reward points, and additional perks like business insurance and expense tracking. With widespread branch support and digital management tools, it’s a go-to option for many MSMEs.

4. Union Bank MSME Credit Card

Union Bank has expanded its MSME offerings, launching customer-customised credit cards with a limit of up to ₹5 lakh, particularly targeting micro-enterprises. These cards come with tailored interest rates, easy online application, and quick turnaround—making them accessible for businesses across India.

Special MSME Credit Card Schemes in 2025

West Bengal Bhabishyat Credit Card Scheme

A standout initiative for 2025 is West Bengal’s special Bhabishyat Credit Card Scheme, which provides MSMEs with subsidized credit cards, flexible limits, and government-backed insurance. The scheme aims to empower local entrepreneurs, especially women and first-time business owners.

What’s New in the Union Budget 2025 for MSME Credit Cards?

This year’s Union Budget brought significant updates for MSMEs:

• Customized credit cards with higher limits: The Union Ministry, led by Nirmala Sitharaman, has launched new customized credit cards with a ₹5 lakh limit for micro-enterprises.
• Reduced interest rates: To promote financial inclusion, the budget has introduced lower rates and flexible repayment for MSME credit cards.
• Digital application process: Streamlined, paperless applications and approvals for MSME credit card apply online, making access quicker and easier.

First Corporate Credit Card for MSMEs: Why It’s a Game-Changer

Many small businesses are applying for their first corporate credit card for MSME in 2025, thanks to improved eligibility criteria and government-backed guarantees. Getting your first business credit card helps you:

• Separate business and personal expenses
• Build a solid business credit history
• Access better financing options in the future

MSME Credit Card Benefits

• Instant liquidity: Access funds when you need them
• Expense management: Track, limit, and analyze business spending
• Rewards and cashback: Special offers for business purchases
• Flexible repayment: EMIs and revolving credit available
• Business insurance: Many cards offer complimentary coverage

How to Apply for an MSME Credit Card in 2025

Most banks and NBFCs offer an MSME credit card apply online facility. Here’s a quick guide:

1. Check eligibility: Most require Udyam registration, business vintage of 1-2 years, and KYC documents.
2. Visit the official website of your preferred bank (e.g., SBI, Axis, Union, Baroda).
3. Submit online application with basic business and financial details.
4. Get approval and card delivery within a few days.

Seeking Advice on Business Credit Card for MSME?

Choosing the right card depends on your business size, spending pattern, and banking relationship. Compare annual fees, interest rates, rewards, and special schemes before you decide. Reach out to your banker or consult a financial advisor for tailored recommendations.

The Touch on Credit Cards

With the government’s push for financial inclusion and a host of new options in 2025, now is the perfect time for MSMEs to leverage credit cards for business growth. Whether you’re looking to apply online or want to know the best schemes like the Bhabishyat Credit Card, MSME credit cards can be a catalyst for your business journey.

Ready to take the next step? Explore your MSME credit card options and unlock new growth in 2025!

MSME Funding in 2025: Powering Growth Alongside Credit Cards

In 2025, MSME funding continues to evolve with new-age solutions and government support aimed at boosting small business growth. While MSME credit cards offer short-term liquidity, businesses often need access to larger funding for expansion, working capital, equipment purchase, and innovation.

Key MSME Funding Options in 2025

1. Bank Loans and Overdrafts:
   Traditional bank loans remain a primary source for MSMEs. Several banks now offer collateral-free loans and overdraft facilities specifically for Udyam-registered businesses, with simplified documentation and faster processing.
2. Government Schemes:

• Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE): Provides collateral-free loans up to ₹2 crore.
• Pradhan Mantri Mudra Yojana (PMMY): Offers funding for micro-businesses, including “Shishu,” “Kishor,” and “Tarun” categories.
• Stand-Up India Scheme: Supports women and SC/ST entrepreneurs with easy credit.

1. Fintech and NBFC Lending:
   Digital lenders and NBFCs have made quick, small-ticket loans accessible for MSMEs. These platforms use alternate data, digital KYC, and faster disbursal—perfect for businesses seeking funds without traditional paperwork hassles.
2. Subsidized Credit Card Schemes:
   Innovative government programs, like the West Bengal Bhabishyat Credit Card Scheme, are bridging the gap between credit cards and business loans, providing subsidized interest rates, insurance, and other benefits.
3. Venture Capital and Angel Funding:
   Startups and growth-stage MSMEs are increasingly tapping into angel investors, venture capital, and crowd-funding for scaling up—especially in technology and e-commerce.

How MSME Credit Cards Complement Funding

• Bridging Short-Term Gaps:
  Credit cards are ideal for bridging short-term working capital needs between funding rounds or loan disbursal.
• Expense Tracking:
  Keeping business expenses separate from personal finances helps build credibility for future loan applications.
• Building Creditworthiness:
  Responsible usage of MSME credit cards can improve your business credit score, making it easier to secure larger loans at better rates.

Government Focus on MSME Funding in Budget 2025

This year’s Union Budget has further boosted MSME funding through:

• Higher credit limits and collateral-free guarantees
• Simplified loan applications via digital portals
• Increased allocation to government schemes for micro-enterprises
• Launch of customer-customized credit cards with ₹5 lakh limits, as announced by the Union Ministry led by Nirmala Sitharaman

Conclusion: Smart Funding, Smarter Growth

MSMEs in 2025 have a rich ecosystem of funding and credit solutions. Pairing the right funding options with MSME credit cards ensures smooth cash flow, resilience, and the ability to seize growth opportunities. Always compare your options and seek professional advice to make the most of the available funding for your business.