U GRO Capital, SBM Bank India partner to launch credit card for MSMEs
Small business lending platform U GRO Capital on Thursday announced the launch of GRO Smart Business credit card powered by RuPay, along with EnKash in partnership with SBM Bank India for the micro, small and medium enterprises (MSMEs).
These credit cards have been specially designed for MSMEs and will help them receive additional credit facility, as well as other benefits from SMB Bank India, including a fixed deposit scheme.
The GRO Smart Business credit card will also help the SMB owners in meeting immediate expenses like purchases of equipment and supplies, manage vendor payments, make business utility bill payments, and managing reimbursements for travel, and entertainment expenses of employees.
Commenting on the development, Shachindra Nath, Executive Chairman and Managing Director, U GRO Capital, said,
"The ‘GRO Smart Business’ credit card will allow our MSME customers to manage their urgent credit requirements and cash-flows effectively. MSMEs face a frequent need for urgent credit, catering to which becomes a challenge causing drastic cash flow disruptions. This arrangement will enable the businesses to tackle these situations effectively."
The terms and conditions for this credit facility shall be as per the existing policies of U GRO Capital.
Among its other features, the credit card will also have a ‘Tap-To-Pay’ functionality for contactless payments, and can be used to withdraw cash from the ATMs up to a certain limit of the total credit limit at a charge. The interest-free period lasts up to 50 days, and charges worth 1.99 percent will be levied on a monthly basis.
U GRO Capital, formerly known as Chokhani Securities, is a BSE-listed NBFC established in 1993. U GRO Capital was established after Shachindra acquired Chokhani Securities and revamped its management team in December 2017. As of March 31, 2020, U GRO Capital’s assets under management (AUM) is at Rs 861 crore, it claims.
2020 has been a tumultuous year for the MSME sector, which took a massive beating amidst the COVID-19 pandemic, with numerous surveys showing the disruptions impacted earnings by 20-50 percent.