Union Bank of India MSME Credit Card : The primary aim of the Union Bank of India MSME Credit Card program is to facilitate easy access to digital credit cards for identified MSME units.
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These credit cards are designed to help MSMEs meet their day-to-day operational expenses efficiently. This digital delivery channel simplifies the process of accessing funds within the sanctioned Fund Based Working Capital limit.
Union Bank of India MSME Credit Card Eligibility.
a) To qualify for the Union Bank of India MSME Credit Card, the unit must be classified as an MSME in accordance with the revised definition and must possess Udyam registration.
b) The unit should already be an existing borrower with a sanctioned Fund Based Working Capital (FB WC) limit (Cash Credit/Overdraft) exceeding Rs. 1 Lakh.
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c) At the time of sanctioning the Union MSME Credit Card, the account should not be categorized as stressed or overdue for review/renewal.
d) For customers with no established credit history, the individual’s Credit Information Company (CIC) score, under whose name the credit card is issued, should be a minimum of 700/-.
Purpose
The Union Bank of India MSME Credit Card is specifically designed to cater to the operational expenses related to the business. It is important to note that the credit card should not be utilized for personal purposes. Depending on the line of business activities, such as gambling or jewelry, the bank may impose usage restrictions on specific Merchant Codes (MCC Codes).
Banking Arrangement
The program accommodates both sole and multiple banking arrangements.
Nature of Facility
While the Credit Card is issued for a portion of the assessed Fund Based Working Capital (FB WC) facility, the remaining amount is made available in the form of Cash Credit/Overdraft (CC/OD) within the Finacle system.
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Quantum of the Loan Issued as Credit Card
The Union Bank of India MSME Credit Card is issued for an amount equivalent to 20% of the sanctioned FB WC limit. The credit card will not be issued for less than Rs. 20,000/- or more than Rs. 2.00 lakh.
Security
Despite being issued separately within the overall sanctioned CC/OD limit, both the Credit Card and the regular CC/OD limit are secured by the same primary/collateral assets. The charge on these securities extends to cover the entire working capital limit, inclusive of the credit card.
Assessment
No separate assessment is required to determine the Credit Card limit, as it constitutes a portion of the assessed Fund Based Working Capital limit. The assessment is conducted in accordance with the MSME policy, not the Credit Card Policy.
Interchangeability
It is important to note that there is no interchangeability between the Union Bank of India MSME Credit Card and the CC/OD limit. Both facilities must be operated separately to ensure accurate financial management.
Type of Card
The Union Bank of India MSME Credit Card is issued in the Rupay Select variant of NPCI.
Union Bank of India MSME Credit Card Ofiicial website Link
