U Gro Capital launches credit cards for small businesses; targets to sell 15,000 cards
- The card has a 'Tap-To-Pay' feature enabling contactless payments for the users and can also be used to withdraw cash from the ATM's
- MSMEs that are eligible to avail business loans from the company will be given incremental funds to open a FD account with SBM Bank
Fintech platform U Gro Capital has partnered with SBM Bank India to launch credit cards for small businesses. The 'GRO Smart Business' credit cars is powered by RuPay along with EnKash.
"These are a range of secured credit cards specially designed for underbanked micro, small and medium enterprises (MSMEs). These can be availed by the U GRO Capital borrowers against a fixed deposit with SBM Bank India," a press release said.
The card has a 'Tap-To-Pay' feature enabling contactless payments for users and can also be used to withdraw cash from the ATM's. Customers will be able to withdraw upto a certain limit of the total credit limit.
It has zero joining and annual fees and finance charges of 1.99% per month. With these cards, MSME entrepreneurs can meet immediate expenses like purchases of equipment and supplies, manage vendor payments, make business utility bill payments, as well as managing reimbursements for travel and entertainment expenses of employees, the press release said.
"Further with the Fixed Deposit facility, MSME borrowers would be able to build a long-term wealth creating asset," it said. The card has a limit of 90% of the FD amount.
MSMEs that are eligible to avail business loans from the company will be given incremental funds to open a FD account with SBM Bank. They will also be offered the credit card against the security of an FD which is maintained by the applicant.
"MSMEs face a frequent need of urgent credit, catering to which becomes a challenge causing drastic cash flow disruptions. This arrangement will enable the businesses to tackle these situations effectively," Shachindra Nath, Executive Chairman & Managing Director, U GRO Capital said.
U Gro Capital is a BSE-listed, small business lending platform and has raised ₹920 crore of capital from a diversified set of private equity funds.
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Business NewsCompaniesNewsU Gro Capital launches credit cards for small businesses; targets to sell 15,000 cards
First Published:8 Apr 2021, 07:11 PM IST
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