Govt to launch low-interest credit cards for small firms by January

The government of India is going to introduce a special credit card for small businesses by January.

This card will have a much lower interest rate, up to 50% less than regular credit cards.

The idea is to help small businesses manage their money better and reduce the stress of waiting for payments from larger companies.

The card will have a credit limit of Rs 5 lakh and an interest-free period of 15–30 days.

The government is working with banks to make sure the card is easy to use and doesn't become a debt trap.

They plan to issue 10 lakh cards in the first year and 2 lakh in the following year.

This initiative is important because the MSME sector employs 75 million people and is crucial for India's manufacturing and export growth.