Union Bank, NPCI launched a Credit Card for MSME Borrowers

To address MSME's business-related cost challenges, Union Bank of India and National Payments Corporation of India (NPCI) have partnered to launch a credit card for borrowers that offer interest-free loans for up to 50 days.

In addition, users will be rewarded in the form of accident insurance of up to Rs 10 lakh, access to domestic airport lounges twice a quarter and other bonuses. 

The credit card will offer a simplified payment mechanism to MSMEs in order to meet their business-related operational expenses. It will also offer an EMI facility to the users on business-related transactions. The availability of the card will also reduce the demand for cash withdrawal by MSMEs.

The 'Union MSME RuPay Credit Card' is a new digital payment method available to  MSME customers at Union Bank of India, which allow covering business-related operating expenses with interest-free credit for up to 50 days. The RuPay MSME card also helps businesses do modern digital journeys. According to Lai, RuPay's portfolio has expanded from home users to business users.