New Delhi, April 14 -- The Centre is likely to launch a low-cost credit card scheme for micro enterprises later this month, aimed at reducing borrowing costs and improving access to working capital. The initiative is expected to target small businesses registered on the Udyam Portal.
Under the proposed scheme, unsecured credit cards with limits of up to Rs 5 lakh will be offered to eligible micro units.
The new cards are expected to significantly reduce borrowing costs compared to conventional credit cards, which typically carry annualised interest rates of 36 42 per cent.
The proposed scheme is likely to cap interest rates at around 18 per cent, with effective costs potentially falling further due to a 30-day interest-free period an...