HDFC Bank unveils four SME-focused credit cards; check key features | Mint
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Business News/ Money / Personal Finance/  HDFC Bank unveils four SME-focused credit cards; check key features

HDFC Bank unveils four SME-focused credit cards; check key features

HDFC Bank launches four new credit cards for SMEs, offering 55-day interest-free credit period and savings on core business expenses.

HDFC Bank unveils game-changing SME credit cards for entrepreneurs, freelancers, and professionals in the SME sector.Premium
HDFC Bank unveils game-changing SME credit cards for entrepreneurs, freelancers, and professionals in the SME sector.

HDFC Bank has announced the launch of four new credit cards tailored specifically for small and medium enterprises (SMEs). These cards cater to the unique needs of entrepreneurs, freelancers, and professionals in the SME sector.

55 days of interest-free credit

One of the key features of these credit cards is that they offer 55-day interest-free credit period, which – the banks claims to be the highest in the industry. This provides business owners with more flexibility and convenience in managing their cash flows.

“The new cards will make up a part of the strong suite of SME payments solutions that the bank offers — BizFirst, BizGrow, BizPower, and BizBlack," the bank said in a press release. It added that the SME Payment Solution is designed to meet the diverse payment needs of self-employed individuals, SMEs and MSMEs.

Also Read: Top 5 Credit Cards That Offer Free Lounge and Club Memberships

Savings on core business expenditure

These SME-focused credit cards also offer savings on essential business expenses such as utility bills, GST, income tax, vendor payments, business travel, and business productivity tools. This feature enables SMEs to streamline their expenditure while maximising cost-efficiency.

Unified digital platform for enhanced payables and receivables management

To address the payable and receivable needs of businesses, HDFC Bank has introduced a unified digital platform. This platform consolidates all payables, including vendor payments, utility bills, and statutory payments, providing SMEs with a streamlined and efficient payment system. 

Furthermore, it optimises supply-chain arrangements and facilitates reconciliation. The platform also offers a detailed dashboard that provides a comprehensive view of payments made and accepted, enabling better cash-flow management.

Also Read: Credit cards in India to soon hit 100-million mark, RBI data reveals

5 key features of the business credit cards

The SME-focused credit cards come with a range of attractive features, including:

  • Up to 55 days of interest-free credit period, which the bank claims to be highest in the industry.
  • Up to 10X Reward Points on business spends.
  • Coverage for various business risks through a specially curated business insurance package, including fire & burglary, cash in safe & transit, and electronic equipment.
  • Exclusive redemption options in a business-focused catalogue, featuring travel & hotels, Microsoft Office 365, Clear Tax, Amazon for Business, and Google Ads.
  • EMI and loan on card facility for added financial flexibility.

“Freelancers/GIG workers is a new emerging segment in the self-employed category and the bank will be launching GIGA Business Credit Card shortly for this segment," the release said.

Also Read: These credit cards by top 5 banks including HDFC Bank, ICICI Bank offer free access to airport lounges. Check full list

HDFC Bank's top position in the credit card market

The bank achieved the milestone of having two crore credit cards in force on January 24, 2024 making it the first lender to do so. Since starting its credit card business in 2001, the bank has become a prominent credit card issuer in India. It reached 1 crore cards in-force in 2017 and doubled that number to 2 crore in six years. 

With a market share of 28.6 percent as of March 2023, HDFC Bank is the largest credit card issuer in India. The bank's monthly card spending ranges between 35,000-45,000 crore, and its payments business accounts for 8 percent of retail assets as of December 2023, which includes consumer durable loans and credit cards.

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Deepika Chelani
A business media enthusiast. She covers the markets and personal finance beat for LiveMint.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
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Published: 07 Feb 2024, 04:46 PM IST
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