In the words of Bill Harper, “Credit card interest payments are the dumbest money of all.” The interest rates are one among such expenses that nobody wants to pay. To salvage this situation, the Union Bank of India has launched a credit card for Micro, Small and Medium Enterprises (MSME) merchants in association with RuPay. The bank is offering a 50-day interest-free loan on this. Notably, this credit card is only for merchants. With this new credit card, many other facilities will also be given to the merchants.
Launching the MSME Credit Card, Nidhu Saxena, Executive Director, Union Bank of India said, “This credit card will reduce the demand for cash for merchant expenses on behalf of MSMEs and make transactions easier. The facility of a new credit card will be provided with a regular working capital limit. MSMEs can avail best in class products provided by the bank.”
No interest till 50 days:
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Small businessmen from time to time need a loan for a very short duration to run their business, for which they sometimes have to take a loan at high interest. This card solves this problem of merchants. Through this credit card, the bank is providing 50 days interest-free loan to the merchants.
Other benefits on the card:
Union Bank is offering free accidental insurance up to Rs 10 lakh with the credit card. Apart from this, free access to domestic airport lounges will be available twice a quarter with a credit card. While using the credit card will also get reward points. The card also offers an EMI facility to the customers on their business-related purchases.
Benefits both, the bank and merchants:
The initiative will digitally empower the MSMEs sector and help the convalescent sector to streamline its business expenses and finances. MSME industry is considered to be the backbone of the Indian economy and this card will help MSMEs to make digital payments with convenience. Apart from that, the launch of ‘RuPay MSME Card’ has expanded the company’s portfolio from retail to merchant consumers. This card will further attract merchants to open their accounts in Union bank.
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