New Delhi, Apr 9 (KNN) U Gro Capital has partnered with SBM Bank India to launch credit cards for small businesses named ‘GRO Smart Business’ credit card which is powered by RuPay along with EnKash.

"These are a range of secured credit cards specially designed for under banked micro, small and medium enterprises (MSMEs). These can be availed by the U GRO Capital borrowers against a fixed deposit with SBM Bank India," a press release said on Thursday.

The card has a 'Tap-To-Pay' feature enabling contactless payments for users and can also be used to withdraw cash from the ATM's. Customers will be able to withdraw upto a certain limit of the total credit limit.

''It has zero joining and annual fees and finance charges of 1.99 per cent per month. The credit card offers a gateway to #SmartBanking features to empower MSME entrepreneurs solve multiple financial challenges. These include meeting immediate expenses like purchases of equipment and supplies, manage vendor payments, make business utility bill payments, as well as managing reimbursements for travel and entertainment expenses of employees,'' it said.

Further with the fixed deposit facility, MSME borrowers would be able to build a long-term wealth creating asset, the statement added.

The MSMEs eligible for the business loans from U GRO Capital would be extended incremental funds to open a fixed account with SBM Bank and the credit card shall be offered against the security of a fixed deposit maintained by the applicant in his name.

''MSMEs face a frequent need of urgent credit, catering to which becomes a challenge causing drastic cash flow disruptions. This arrangement will enable the businesses to tackle these situations effectively. We have been constantly exploring impactful solutions to support the revival and growth of the nation's MSMEs. We believe this collaboration to be a significant initiative in the right direction,” said Shachindra Nath, Executive Chairman & Managing Director, U GRO Capital.