Union Bank of India in association with National Payments Corporation of India (NPCI) announced on February 25 the ‘Union MSME RuPay Credit Card’. It has been launched with an aim to provide digital delivery of Finance to Micro, Small & Medium Enterprises(MSMEs) in the current phase of progression towards a digital economy.
The card for MSMEs is available to eligible borrowers of Union Bank of India and will provide a simplified payment mechanism to MSMEs to meet their business-related operational expenses, the Bank said in a statement.
Key highlights
With Union MSME RuPay Credit Card, the MSME borrowers will be able to enjoy an interest-free credit period of upto 50 days on their business spends.
The Card also offers EMI facility to 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.
They will also be benefitted in the form of accidental insurance coverage of upto Rs. 10 lakhs, domestic airport lounge access of 2 per quarter and other rewards using this Card.
Easy credit appraisal for MSMEs
Rajkiran Rai G, Managing Director & CEO, Union Bank of India, said, “India has rich entrepreneurial talent at the bottom of pyramid with more than sixty million micro entrepreneurs. The Union MSME RuPay Credit Card, a first of its kind in the industry, addresses long felt need of easy credit appraisal without dilution of risk standards. The alternative cash-flow based underwriting in digital ecosystem helps our MSMEs better manage liquidity while reducing the cash dependence in business operations.”
Nidhu Saxena, Executive Director, Union Bank of India said, “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.”
Ms Praveena Rai, COO, 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 address the existing credit gap in the MSME sector so that they can continue to contribute towards economic growth. We are also excited to witness the portfolio expansion of RuPay from retail users to business users.”
