Corporate credit card for SMEs, startups launched
There are around 42 million MSME enterprises in India contributing 6.11 % of the GDP in manufacturing and 24.63 % of the GDP to the service sector.
EnKash Freedom Card offers customized billing cycle based on the repayment ability of the businesses. The company has come up with a corporate card to cater the varied billing cycles as per the working capital cycles of different businesses. Freedom Card is designed to fulfil the credit requirements of SMEs & StartUps segment, which are highly underserved at present.
There are around 42 million MSME enterprises in India contributing 6.11 % of the GDP in manufacturing and 24.63 % of the GDP to the service sector. Access to credit is essential to MSMEs, as lending in this sector has been dominated informal financial entities and almost 40% of credit allotment to MSMEs in India is through informal channels.
At the same time, the startup sector is booming in India at a tremendous pace, according to the latest KPMG report on the Indian Startup Ecosystem, the number of startups in the country has gone up from 7,000 in 2008 to 50,000 in 2018, a growth of over seven times in the last decade. As the number of startup grows further it will require easy access to credit.
In a statement Bindal said, “While we will continue enhancing our capabilities for these Bank partnerships, we realized that specific products are required to address cases which are peculiar to underserved SMEs and startups as their requirements are different. These segments are not able to benefit fully with the existing solutions in the market, be it for enhancing their short-term credit requirements or convenience or just simply getting access to a commercial credit card.”