Budget 2025: ME- card unveiled to strengthen MSMEs credit access; Key features

Each card will have a Rs 5 lakh limit, with 1 million cards set to be issued in the first year. Additionally, the credit guarantee cover for micro and small enterprises will be doubled from Rs 5 crore to Rs 10 crore, unlocking an estimated Rs 1.5 trillion in additional credit over five years. Export-oriented MSMEs will also benefit from term loans of up to Rs 20 crore.

Regarding the processing fee for the sanctioning of credit facilities under the ME-Card Scheme, it is proposed that banks may charge processing fees in accordance with their internal lending policies.

She also announced that the investment and turnover thresholds for MSME classification would be increased to 2.5 and 2 times, respectively, to enhance scalability, technological advancements, and access to capital.  

For smaller entrepreneurs, 6.8 million street vendors under the PM SVANidhi scheme will receive improved banking support, including higher bank loan limits and UPI-linked credit cards with a Rs 30,000 cap.  

Budget 2025: Manufacturing initiatives

The government will introduce a dedicated scheme for the footwear and leather industries while also implementing measures to establish India as a global toy manufacturing centre. Furthermore, a National Manufacturing Mission will be set up to support small, medium, and large industries, reinforcing the ‘Make in India’ initiative through policy support, governance frameworks, and execution roadmaps.  

Presenting her eighth consecutive Budget, Sitharaman said the document prioritises the needs of the poor, youth, farmers, and women. Notably, India currently has over 10 million registered MSMEs, employing 75 million individuals and contributing 36 per cent to the manufacturing sector. These enterprises account for 45 per cent of the country’s exports.

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