BIG DIWALI SALE - Flat 70% Discount On All Pendrive / Android Courses, Valid Till 30th Oct'19. For More Call On 9354229384, 9354252518, 9999830584, 8077211847.

Current Affairs

India’s 1st corporate credit card for SME

Date: 14 August 2019 Tags: Industries

Issue

 

EnKash, a two year old card focused fintech startup have announced the launch of Corporate Credit Card for SMEs/MSMEs and startup, called the Freedom card. 

 

Background
 

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. Anew easy credit mechanism is required to boost domestic industries.

 

EnKash credit cards salient features

  • The Freedom card would give the SME’s and startups the freedom to avail credit facility for immediate needs and to manage their financial liquidity. 
  • 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 fulfill the credit requirements of SMEs & Startups segment, which are highly underserved at present 
  • 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. 

SME and MSME

Micro Enterprises Does not exceed twenty five lakh rupees
Small Enterprises More than twenty five lakh rupees but does not exceed five crore rupees
Medium Enterprises More than five crore rupees but does not exceed ten crore rupees