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This new credit card for small businesses offers cashbacks, loans, discounts, insurance, more; see details

Credit and finance for MSMEs: The new card provides benefits including 2 per cent cashback, 48-day interest-free credit, and instant loans. Fire insurance, burglary, and housebreaking coverage are also added to the benefits.

Credit and finance for MSMEs: AU Small Finance Bank on Monday launched its Business Cashback RuPay Credit card for small businesses and self-employed customers with benefits including 2 per cent cashback, 48-day interest-free credit, and instant loans. In addition, the card offers fire insurance, burglary, and housebreaking coverage.

The bank said the new credit card launched in partnership with RuPay — the global card payment network from India by the National Payments Corporation of India (NPCI) — provides lifestyle and travel benefits as well such as up to 30 per cent discount at over 300 restaurants under its Silver Spoon Dining programme, eight complimentary railway lounge access per annum, and a 1 per cent fuel surcharge waiver.

“As the self-employed customer segment is at the heart of our bank, we are focused on adding value to these customers and promoting credit inclusion. Going forward, we shall work towards bringing customized benefits to MSMEs through our other credit card variants too,” said Sanjay Agarwal, MD and CEO, of AU Small Finance Bank in a statement.

AU Small Finance Bank was founded as a vehicle finance company in 1996 and was converted into a small finance bank in 2017. It serves mostly low and middle-income groups and micro and small businesses that do not have access to formal banking and financial sources.

“This (Business Cashback RuPay) credit card is a fantastic solution that empowers self-employed individuals and promotes financial inclusion. I’m confident that this credit card will be a great success and benefit numerous businesses,” said Dilip Asbe, CEO, of National Payments Corporation of India.

Meanwhile, the government is also expected to launch a merchant credit card (MCC), on the lines of the Kisan credit card, for MSMEs this year to help them with short-term collateral-free loans to tide over short-term liquidity woes, FE reported in January this year.

Moreover, after the Reserve Bank of India (RBI) allowed linking RuPay credit cards to the Unified Payment Interface (UPI) last year, the NPCI had recently partnered with different payment aggregators to enable merchant transactions through RuPay credit cards on UPI.