Udyam Credit Card Apply: How to Get the ₹5 Lakh Micro Enterprise Credit Card on JanSamarth (2026)

You run a small shop, a tailoring unit or a one-person service business. You have an Udyam certificate, and you've heard the government now gives micro businesses a credit card with up to ₹5 lakh, no collateral and 18% interest.

Wondering how to Udyam credit card apply online? Well, you apply on the government's JanSamarth portal (jansamarth.in) under the Credit Card for Micro Enterprises (CCME) scheme, then pick a participating bank. Most approved cards so far have limits far below ₹5 lakh.

But two things decide whether you get it: one is your relationship with the bank, and the second is your credit record.

This guide covers who qualifies, the step-by-step JanSamarth process, documents, what the card actually costs at IDFC FIRST and HDFC Bank, and the catch that some banks offer it only to existing customers.

🔎 Need a card for your personal spending too? The Udyam card is strictly for business. Find the best credit card for you on Monzy for everything else.

TL;DR

• What it is: a government-backed RuPay business credit card for Udyam-registered micro enterprises. The limit goes up to ₹5 lakh, with no collateral and 75% guarantee cover from the government's CGTMSE trust.
• Launched May 25, 2026 by Finance Minister Nirmala Sitharaman at SIDBI's Foundation Day in Mumbai. NPCI said it went live with nine issuers.
• Where to apply: JanSamarth portal → CCME scheme → choose your bank. The bank then does its own KYC and credit check.
• Costs are low for a credit card: about 18% a year interest (1.5% a month) at IDFC FIRST, HDFC Bank and BOBCARD, against 42–46% on regular cards. IDFC FIRST charges 1% of the limit or ₹1,000 a year (whichever is lower) plus a 0.55% processing fee. HDFC Bank lists no joining or renewal fee.
• The catch: some banks only give it to existing customers. Indian Bank, for example, requires 12 months with the bank. Uptake has been slow: 12,398 cards by July 20, 2026, against a 10 lakh first-year target.
• Average limit so far is about ₹1.1 lakh, not ₹5 lakh (₹136.91 crore across 12,398 cards).

What is the Udyam (Micro Enterprise) credit card?

It's a scheme card, not a single bank's product. Finance Minister Nirmala Sitharaman announced it in the Union Budget 2025–26 for micro enterprises registered on the Udyam portal, and it was launched on May 25, 2026. PIB describes it as revolving credit of up to ₹5 lakh with 75 percent guarantee coverage and without mandatory primary security.

In plain terms:

• It's a real credit card. It runs on RuPay, so most issuers let you link it to UPI and pay vendors by scanning QR codes.
• It's for business spends only. Banks block categories like hotels, jewellery, gambling and cash withdrawals. HDFC Bank's MITC also lists a set of blocked MCCs for its Micro Enterprise card, including hotels, gaming and wallet loads.
• The government shares the risk. If you default, the CGTMSE trust covers most of the bank's loss. That's why banks can lend without collateral, but it doesn't make the debt any less yours.
• Joining fees are subsidised. According to the government's Lok Sabha reply (as reported by Kashmir Life), the joining fee is waived for the first 10 lakh customers, up to ₹500 per RuPay card.

Which banks issue it?

NPCI said the card went live with nine issuers, but we couldn't find an official list of all nine. Banks with a live product page or confirmed launch include:

• IDFC FIRST Bank: the Micro Enterprise Credit Card. See our IDFC FIRST issuer guide.
• HDFC Bank: the Micro Enterprise Credit Card. See our HDFC Bank credit cards guide.
• Indian Bank: IND SUVIDHA Micro Credit Card.
• BOBCARD (Bank of Baroda): a Micro Enterprise Credit Card. See our Bank of Baroda issuer guide.

JanSamarth shows the participating banks when you apply, so trust that list over any blog, including this one.

Who is eligible for the Udyam credit card?

At the scheme level, the rule is simple: any Udyam-registered micro enterprise that needs working capital. Since April 1, 2025, a business counts as "micro" if its investment in plant, machinery or equipment is up to ₹2.5 crore and its annual turnover is up to ₹10 crore.

At the bank level, it's stricter. Here's what the banks publish.

Sources: Indian Bank IND SUVIDHA page (updated Sep 22, 2026), HDFC Bank and IDFC FIRST Bank Micro Enterprise Credit Card pages.

CMR (CIBIL MSME Rank) is TransUnion CIBIL's 1–10 risk rank for businesses, where 1 is best. If your business has no CMR, banks look at the owner's personal score. Our guides on what a CIBIL score is and the minimum CIBIL score for a credit card explain what counts as good.

⚠️ Watch out: Indian Bank's limit formula is the real eye-opener. If your bank account shows ₹6 lakh of credits a year, 20% of that is ₹1.2 lakh, not ₹5 lakh. That lines up with the national average of about ₹1.1 lakh per card.

How to apply for the Udyam credit card on JanSamarth: step by step

The card is issued through the participating banks, not through JanSamarth itself. Make sure your business is registered on Udyam and classified as a micro enterprise. And you should ideally have an account in one of the partner banks.

Here's the current flow of application:

1. Keep your Udyam Registration Number ready. If you don't have one, register for free at udyamregistration.gov.in with your Aadhaar and PAN. No agent or fee is needed, and that's the only official site.
2. Go to jansamarth.in and choose the Credit Card for Micro Enterprises (CCME) scheme. Sign in with your mobile number and OTP.
3. Enter your business and financial details. This includes your Udyam number, PAN, GSTIN if you have one, bank account and turnover. You'll be asked to consent to the portal fetching your data.
4. Submit the documents it asks for (see the next section).
5. Select your bank. Pick the bank where you already have your current or savings account, if it's on the list. This is the single biggest factor in getting approved.
6. Wait for the bank to contact you. IDFC FIRST says a relationship manager will call for business KYC and other documents. Indian Bank and others do their own credit check.
7. Activate the card and link it to UPI. With IDFC FIRST, the card links automatically to its mobile app. You can also add it to PhonePe, Google Pay or Paytm.

You can also start at your bank directly. HDFC Bank, IDFC FIRST and Indian Bank all have an "Apply" button on their product pages, though most route the application through JanSamarth.

Documents required for the Udyam credit card

There's no single scheme-wide list. These are the documents banks ask for:

• Udyam Registration Number (mandatory everywhere)
• PAN and Aadhaar of the owner
• GST registration number, if registered
• Bank account details, usually 6–12 months of statements
• ITR or GST returns (HDFC Bank asks for any of ITR, GST returns or the Udyam number)
• Business KYC such as shop licence or partnership deed, collected by the bank later

If you're self-employed and also want a personal card, the list is similar. See our guide to documents required for a credit card and credit cards for the self-employed.

Udyam credit card fees and interest: what it really costs

This is where the card shines, as long as you use it the right way.

Sources: IDFC FIRST, HDFC Bank and Indian Bank product pages, October 2026.

Worked example (IDFC FIRST, ₹2 lakh limit):

• Processing fee: 0.55% of ₹2 lakh = ₹1,100 + 18% GST = ₹1,298 (one-time)
• Annual fee: 1% of ₹2 lakh = ₹2,000, but the cap is ₹1,000, so you pay ₹1,000 + GST = ₹1,180 a year
• Rewards on ₹50,000 a month of business spend: 750 points = ₹187.50 a month, or about ₹2,250 a year

So at ₹50,000 a month, the rewards roughly cover the annual fee. The real value is cheap, flexible credit. If you have to carry a balance, 18% a year is far better than the 42–46% on a regular personal card (ICICI's MITC, for example, lists 45% a year). It's also simpler than an overdraft.

🔎 Comparing it with a regular business card? Our business credit cards guide covers the options. For personal spends, find the best credit card for you on Monzy.

The catch: why many applicants get rejected

The scheme's own numbers tell the story. By July 20, 2026, banks had issued 12,398 cards with ₹136.91 crore in limits, according to the government's reply to Lok Sabha Unstarred Question 2305 (August 3, 2026), as reported by Kashmir Life. The first-year target is 10 lakh cards. Uttar Pradesh led with 1,678 cards, then Maharashtra (1,259) and Tamil Nadu (1,121).

Here's why so few get through:

1. Existing-customer rules. Indian Bank explicitly says new-to-bank customers aren't eligible and requires 12 months' vintage. Other banks may not say so publicly but behave the same way. If your business account is at a bank that isn't on JanSamarth's list, you start at a disadvantage.
2. Limits are based on your banked turnover. If most of your sales are in cash, your bank statement makes your business look smaller than it is. A 20%-of-credits formula then gives you a small limit.
3. Credit history is checked. Any loan more than 30 days overdue, a weak CMR, or a promoter score below about 730 can sink the application. See common credit card rejection reasons.
4. Business use only. If you planned to use it for personal shopping, this isn't that card. Personal and blocked categories get declined.

So, if you already bank with a participating bank, run most of your sales through that account and have a clean repayment record, apply. It's one of the cheapest lines of credit a micro business can get in India.

If you don't, spend three to six months routing your UPI and sales receipts through one participating bank first. Then apply.

Udyam card vs other RuPay and business credit cards

If you want a personal RuPay card for UPI spends, see our RuPay credit cards guide. Freelancers without Udyam can check credit cards for freelancers.

FAQs about Udyam credit card apply

How do I apply for the Udyam credit card?

Go to jansamarth.in, choose the Credit Card for Micro Enterprises (CCME) scheme, sign in with your mobile OTP, and enter your Udyam number, business and financial details. Upload the documents it asks for and select a participating bank. The bank then completes KYC and its credit check before issuing the card.

What is the limit of the Udyam credit card?

The scheme allows up to ₹5 lakh, but your bank sets the actual limit. Indian Bank, for example, gives 20% of your existing loan limits, or 20% of your last 12 months' sales or bank credits, with a minimum of ₹10,000. The national average so far is about ₹1.1 lakh per card.

Who is eligible for the Udyam credit card?

Any Udyam-registered micro enterprise is eligible under the scheme. Micro means investment up to ₹2.5 crore and turnover up to ₹10 crore. Banks add their own rules, such as at least 12 months as an existing customer at Indian Bank, an ITR above ₹6 lakh at HDFC Bank, and a clean repayment record.

Can a new customer get the Udyam credit card?

At some banks, no. Indian Bank says new-to-bank customers aren't eligible and requires 12 months' relationship. IDFC FIRST and HDFC Bank don't publish such a rule, but your approval odds are much better at a bank where your business already has an account.

What is the interest rate on the Micro Enterprise credit card?

IDFC FIRST charges 1.5% a month (18% a year), and HDFC Bank lists an 18% APR. That's far below the 42–46% a year on most personal credit cards. Interest applies only if you don't pay the full bill by the due date.

What are the fees for the Udyam credit card?

At IDFC FIRST, there's no joining fee. The annual fee is 1% of the limit or ₹1,000 + GST, whichever is lower, plus a one-time 0.55% + GST processing fee. HDFC Bank lists no joining or renewal fee. Indian Bank passes the CGTMSE guarantee premium to the borrower.

Is the Udyam credit card a RuPay card? Can I use it on UPI?

Yes. It's issued on RuPay, so you can link it to UPI apps like PhonePe, Google Pay and Paytm and pay merchant QR codes. IDFC FIRST gives higher rewards on UPI payments above ₹2,000 made through its own app.

Can I withdraw cash or use the Udyam card for personal spends?

No. It's for business spends only. IDFC FIRST blocks cash withdrawals, hotels, jewellery, gambling and unrelated categories, and HDFC Bank blocks a similar list. For personal spending, find the best credit card for you on Monzy.

Do I need a GST registration to apply?

Not always. Udyam registration is mandatory, but GST is asked for only if you're registered. Without GST, banks rely more on your ITR and bank statements to judge turnover.

So, what should you do?

If you're a micro business with a Udyam certificate, apply through JanSamarth, and choose the bank you already bank with. That one choice matters more than anything else. Keep your bank statement healthy, because that's what sets your limit.

Use the card as a 45–55 day float for stock and vendor payments. Pay the full bill, and you pay no interest at all. Even if you have to carry a balance, 18% a year beats most other unsecured credit.

And for your own spending, groceries, travel and online shopping, use a separate personal card that rewards you properly. Find the best credit card for you on Monzy.

Disclaimer

This article is for informational purposes only and doesn't constitute financial advice. Scheme details come from PIB (May 25, 2026), NPCI and a reported Lok Sabha reply (August 3, 2026). Eligibility, fees and features come from the IDFC FIRST Bank, HDFC Bank and Indian Bank product pages, and are accurate to the best of our knowledge as of October 28, 2026, but they can change. JanSamarth's screens and the list of participating banks may differ from what's described here. Read the latest MITC and the scheme terms on JanSamarth and your bank's website before you apply.