{"id":6110,"date":"2023-01-30T10:12:07","date_gmt":"2023-01-30T10:12:07","guid":{"rendered":"https:\/\/www.indifi.com\/blog\/?p=6110"},"modified":"2024-02-02T11:10:27","modified_gmt":"2024-02-02T11:10:27","slug":"vyapar-credit-card","status":"publish","type":"post","link":"https:\/\/www.indifi.com\/blog\/vyapar-credit-card\/","title":{"rendered":"Vyapar Credit Card for MSMEs | Benefits, Eligibility, Launch Date"},"content":{"rendered":"\n<p>The government is always moving to improve credit access to MSMEs, bringing out new schemes that can help support upcoming entrepreneurs. Over the years, many such attempts have supported the MSME sector and its growth, as it is vital to a fast-growing economy. The<strong> Vyapar Credit Card<\/strong> is another scheme the government plans to launch to support and further the development of MSMEs by providing them with better access to finance.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_67_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.indifi.com\/blog\/vyapar-credit-card\/#Everything_About_MSME_Vyapar_Credit_Card\" title=\"Everything About MSME Vyapar Credit Card\">Everything About MSME Vyapar Credit Card<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.indifi.com\/blog\/vyapar-credit-card\/#Need_for_an_MSME_Credit_Card\" title=\"Need for an MSME Credit Card\">Need for an MSME Credit Card<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.indifi.com\/blog\/vyapar-credit-card\/#Benefits_of_MSME_Vyapar_Credit_Card\" title=\"Benefits of MSME Vyapar Credit Card\">Benefits of MSME Vyapar Credit Card<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.indifi.com\/blog\/vyapar-credit-card\/#Vyapar_MSME_Credit_Card_Eligibility\" title=\"Vyapar MSME Credit Card Eligibility\">Vyapar MSME Credit Card Eligibility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.indifi.com\/blog\/vyapar-credit-card\/#Vyapar_Credit_Card_Launch_Date\" title=\"Vyapar Credit Card: Launch Date\">Vyapar Credit Card: Launch Date<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.indifi.com\/blog\/vyapar-credit-card\/#Concluding_Thoughts\" title=\"Concluding Thoughts\">Concluding Thoughts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.indifi.com\/blog\/vyapar-credit-card\/#FAQ\" title=\"FAQ\">FAQ<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Everything_About_MSME_Vyapar_Credit_Card\"><\/span><strong>Everything About MSME Vyapar Credit Card<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Vyapar Credit Card (VCC) is part of the Centre\u2019s Merchant Credit Card (MCC) Scheme for traders and micro enterprises. The credit card may offer free credit to merchants and traders for up to 50 days and covers about 85% of Micro Units under the Credit Guarantee Fund for Micro Units scheme.<\/p>\n\n\n\n<p>Besides this, the Vyapar Credit Card may also offer loans to farmers, who will get their versions via the Kisan Credit Card. The Kisan Credit Card will enable farmers to take out loans under the Merchant Credit Card scheme at nominal interest rates.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Need_for_an_MSME_Credit_Card\"><\/span><strong>Need for an MSME Credit Card<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Currently, over 60% of MSMEs are not borrowing from the financial sector, which has created a credit gap between Rs. 20 and 25 trillion. However, that does not mean that MSMEs are not borrowing money at all. Most of these companies usually go for private lenders at much higher interest rates but get access to limited resources.<\/p>\n\n\n\n<p>So, there is a need to push schemes like the Merchant Credit Card, which can provide MSMEs with the funds they need through Vyapar Credit Cards. The roll-out of the Vyapar Credit Card will benefit every key individual and business in the MSME sector, whether a footpath hawker or saree weaver.<\/p>\n\n\n\n<p>Also Read:- <a href=\"https:\/\/www.indifi.com\/blog\/top-5-nationalized-bank-loan-options-for-women-entrepreneurs\/\">Top 5 Nationalized Bank Loan Options For Women Entrepreneurs<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_MSME_Vyapar_Credit_Card\"><\/span><strong>Benefits of MSME Vyapar Credit Card<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As mentioned earlier, the MSME Card will benefit in many ways-<\/p>\n\n\n\n<ul>\n<li>For instance, these<a href=\"https:\/\/www.indifi.com\/blog\/top-10-benefits-accepting-credit-cards-payments\/\"> credit cards<\/a> should help MSMEs and other small businesses raise the operating capital they will need to get going.<\/li>\n\n\n\n<li>Such a credit card should also help ensure that these enterprises generate enough revenue to keep afloat.<\/li>\n\n\n\n<li>Also, by offering capital loans to MSMEs at nominal interest rates, Vyapaar Credit Cards should be able to guarantee the credit required for them to stay in business.<\/li>\n\n\n\n<li>Vyapar Credit cards should also help set up a formal financing system for MSMEs and other small businesses by providing them with immediate financial assistance.<\/li>\n\n\n\n<li>From the Centre\u2019s perspective, Vyapaar Credit Cards should help bridge credit gaps between Rs. 20 and 25 lakh crores.<\/li>\n\n\n\n<li>Moreover, such schemes will encourage the MSME sector to borrow more from the financial industry than private players.<\/li>\n\n\n\n<li>There is a need for an integrated digital ecosystem to help keep track of the MSME sector, and schemes like the Vyapar Credit Card should help propagate it.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.indifi.com\/merchant-advance-capital-against-pos-machine\"><img decoding=\"async\" loading=\"lazy\" width=\"500\" height=\"91\" src=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan-3-500x91.jpg\" alt=\"MSME loan for Wholesalers\" class=\"wp-image-5351\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan-3-500x91.jpg 500w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan-3.jpg 716w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><\/a><\/figure><\/div>\n\n\n<p>Also Read:- <strong><a href=\"https:\/\/www.indifi.com\/blog\/private-bank-vs-public-sector-banks\/\" target=\"_blank\" rel=\"noreferrer noopener\">Private Bank Vs Public Sector Banks<\/a><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Vyapar_MSME_Credit_Card_Eligibility\"><\/span><strong>Vyapar MSME Credit Card Eligibility<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Vyapar Credit card will be of the Rupay type, and only those enterprises classified as MSMEs will be eligible to apply for and get one. The eligibility requirements for obtaining the MSME Vyapar Credit Card are as follows-<\/p>\n\n\n\n<ul>\n<li>The business unit should be an MSME as per the revised definition regardless of the constitution and must register itself under Udyam.<\/li>\n\n\n\n<li>The accounts should not be overdue for renewal at the time of sanctioning of the card.<\/li>\n\n\n\n<li>The owner of the MSME should have a credit score of at least 700, or -1 if there is no credit history.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Vyapar_Credit_Card_Launch_Date\"><\/span><strong>Vyapar Credit Card: Launch Date<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The government will soon launch the Vyapar Credit Card for MSMEs. While the exact launch date seems uncertain, the Centre plans to launch a credit card for MSMEs linkable with UPI. The Indian Banks Association (IBA) is developing the framework for the Merchant Credit Card scheme along with the DFS and RBI. <\/p>\n\n\n\n<p>Besides the DFS and the Reserve Bank of India, the commerce and industry ministries are lending a hand in coming up with such <a href=\"https:\/\/www.indifi.com\/blog\/government-business-loan-schemes-for-msmes-in-india\/\">schemes for MSMEs<\/a> and upcoming entrepreneurs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concluding_Thoughts\"><\/span><strong>Concluding Thoughts<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Centre may also launch other schemes besides the Vyapar Credit Card and Merchant Credit Card. For instance, there is a plan to offer short-term credit to entrepreneurs who want to set up businesses at low-interest rates, which ensures they get the working capital they need.<\/p>\n\n\n\n<p>Moreover, such schemes also provide MSMEs with the cash flow they will need in times of uncertainty, such as a global economic recession. There are over 63 million MSMEs in India that will employ more than 110 million people. So, you can see why introducing schemes like the Vyapar Credit Card is beneficial.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQ\"><\/span><strong>FAQ<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>1.&nbsp;&nbsp;&nbsp; What will be the nature of the MSME Vyapar Credit Card?<\/strong><\/p>\n\n\n\n<p>Under the Vyapar Credit Card scheme, MSMEs will get a part of the funds they will need for operations as Working Capital and the rest will be Overdraft or Cash Credit.<\/p>\n\n\n\n<p><strong>2.&nbsp;&nbsp;&nbsp; What will be the Loan Amount Limits under the Vyapar Credit Card Scheme?<\/strong><\/p>\n\n\n\n<p>MSMEs can take out loans of up to 20% of the sanctioned working capital, where the minimum limit is Rs. 20,000, and the maximum limit is Rs. 2 Lakhs.<\/p>\n\n\n\n<p><strong>3.&nbsp;&nbsp;&nbsp; Will the Credit Cards and Cash Credits or Overdrafts be Interchangeable?<\/strong><\/p>\n\n\n\n<p>No. You cannot interchange credit cards and cash credits or overdrafts.<\/p>\n\n\n\n<p><strong>4.&nbsp;&nbsp;&nbsp; What type of Credit Card will the MSME sector get under the Vyapar Credit Card Scheme?<\/strong><\/p>\n\n\n\n<p>The MSME sector will get a Rupay credit card under the Vyapar Credit Card Scheme.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The government is always moving to improve credit access to MSMEs, bringing out new schemes that can help support upcoming entrepreneurs. Over the years, many such attempts have supported the MSME sector and its growth, as it is vital to a fast-growing economy. The Vyapar Credit Card is another scheme the government plans to launch [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[141],"tags":[],"_links":{"self":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/6110"}],"collection":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/comments?post=6110"}],"version-history":[{"count":7,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/6110\/revisions"}],"predecessor-version":[{"id":7275,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/6110\/revisions\/7275"}],"wp:attachment":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media?parent=6110"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/categories?post=6110"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/tags?post=6110"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}