Union Bank, NPCI Launch Credit Card ForMSME Borrowers To Meet Biz Expenses

The National Payments Corporation of India and Union Bank of India are partnering to launch a credit card for the Micro Small and Medium Enterprise owners for business-related expenses.

According to a joint statement, customers of Union Bank of India can avail this newly launched payment tool named as 'Union MSME RuPay Credit Card' for meeting their business-related operational expenses with interest-free credit for up to 50 days.

The card will also offer Easy Monthly Instalment 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, it includes benefits like accidental insurance coverage of up to INR 10 lakh, domestic airport lounge access of two times per quarter, and other rewards

"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," NidhuSaxena, 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.

NPCI Chief Operating officer, Praveena Rai, on this launch 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.