Union Bank, NPCI launch credit card for MSME borrowers to meet biz expenses

To tide over the challenges to meet business-related expenses by MSMEs, Union Bank of India and the National Payments Corporation of India (NPCI) have jointly launched a credit card for the borrowers, offering interest-free credit for up to 50 days.

The ‘Union MSME RuPay Credit Card’ is a new digital payment tool available to the MSME customers of Union Bank of India for meeting their business-related operational expenses with interest-free credit for up to 50 days, according to a joint statement released on Friday.

The credit card will provide a simplified payment mechanism to MSMEs (micro, small and medium enterprises) to meet their business-related operational expenses, it said.

Among others, the card also offers the EMI facility to the customers on their business-related purchases. MSMEs will also get specially curated efficient business services on this card, which will help them in taking their business on most of the digital platforms.

Additionally, they will also be benefitted in the form of accidental insurance coverage of up to Rs 10 lakh, domestic airport lounge access of two times per quarter, and other rewards using this card.

“This credit card will reduce the demand for cash withdrawal by MSME for business expenses besides simplifying their payment mechanism.

“With the newly launched credit card facility coupled with the regular working capital limits, MSMEs can reap the benefits of best in class products being made available to them by the bank,” Nidhu Saxena, executive director of Union Bank of India, said.

It will improve the digital delivery channel in servicing the MSME clientele in a fast-growing tech-savvy economy, Saxena said.

Praveena Rai, chief operating officer of NPCI, said, “We believe this initiative will digitally empower MSMEs and help them streamline their regular business expenditure and finances. MSMEs are considered to be the backbone of the economy and we are confident that this card will support MSME with convenient, credit card digital payments.”

RuPay MSME cards will also support the businesses in their journey of contemporary digitisation, she said.

Rai said that there has been portfolio expansion of RuPay from retail users to business users.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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