Private sector lender Axis Bank has partnered with fintech lending platform Rupifi to offer a business credit card powered by Visa. The card will be offered to micro, small and medium enterprises (MSMEs) to transact on aggregator platforms for their business purchases.
Rupifi works with large aggregators like food delivery platforms, e-commerce companies, grocery, pharma, agri-commodities and others to reach out to micro businesses selling on their platforms. They underwrite these companies on the basis of transaction data and extend credit to them. Now with the credit card, Rupifi and Axis Bank can enable business loans to these entities through the card.
The average credit limit offered will be in the range of Rs 1 and 2 lakh per month and will be decided based on business data of the MSME’s transactions with the aggregator platforms, GMV (Gross Monthly Volume) of last six months and overall revenue among other factors.
“This partnership will give Axis Bank an opportunity to tap into the unexplored and lucrative MSME segment, which is an addressable market of over $100 billion. This will also help us penetrate further into retail and commerce, food, tech, travel, transport, mobility, and logistics businesses,” said Sanjeev Moghe, Head, Cards and Payment at Axis Bank.
Sharing details on the card features, the bank said there is a joining fee of Rs 1,000 and comes with a revolving 51 days interest-free credit period. Like a normal credit card, businesses can either pay off the entire amount within the due date or carry the balance over by paying the minimum due.
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