SBM Bank and U GRO Capital to Launch ‘GRO Smart Business’ Credit Cards

U GRO Capital, a BSE listed, sector-focused small business lending fintech platform, announced its partnership with SBM Bank India towards the launch of ‘GRO Smart Business’ credit card, powered by RuPay, along with EnKash. These are a range of secured credit cards specially designed for underbanked micro, small and medium enterprises (MSMEs). These can be availed by the U GRO Capital borrowers against a fixed deposit with SBM Bank India.

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. Further with the Fixed Deposit facility, MSME borrowers would be able to build a long-term wealth creating asset.

Commenting on the launch, Mr. Shachindra Nath, Executive Chairman & Managing Director, U GRO Capital stated, “We are elated to collaborate with SBM Bank India and launch this distinctive arrangement powered by the RuPay Network. 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 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.”

Speaking on the initiative, Neeraj Sinha, Head – Retail & Consumer Banking, SBM Bank India, said, “At SBM Bank India, we are committed to use the power of banking, technology and collaboration to create unique smart solutions. The launch of the ‘GRO Smart Business’ credit card is in line with the same strategy. We are proud to partner U GRO Capital for the new product.”

The pandemic induced dynamic circumstances have led to a realization of the need to innovate and arrive at holistic solutions to the MSME credit issues. Various businesses have been affected due to the unavailability of requisite funds during urgent requirements. Needless to say, fintechs and NBFCs with their nimble nature are sufficiently equipped with operational and technological capabilities to bridge the credit gap.

The MSMEs eligible for the business loans from U GRO Capital would be extended incremental funds to open a Fixed Deposit 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. The terms and conditions of this credit facility shall be as per the existing policies of U GRO Capital.

Features of the Credit card:

• Card type: Corporate-owned Individual liability
• Limit: 90% of FD amount
• Joining & Annual Fees: Zero
• Finance Charges: 1.99% (monthly)
• Interest-free period/Cash advance interest-free period:  Max. 50 days
• Cash Advance limit: 30%
• The card shall have a ‘Tap-To-Pay’ functionality for contactless payments and can be used to withdraw cash from the ATMs upto a certain limit of the total credit limit at a charge

Features of the Fixed Deposit:

• Amount: Rs. 10,000 – Rs. 10 lakhs
• Tenure: 1-5 years
• Rate of Interest: 7.5% (fixed)
• Required Documentation: AADHAR based OKYC & e-PAN verification (No hard documents required)
• Time required to open the Fixed Deposit: 3 hrs