Credit and financing for MSMEs: In an effort to help businesses and business owners gain instant access to credit, GimBooks, a Chattisgarh-based fintech start-up focused on small and medium-sized enterprises (SMEs), has launched a new credit card. credit called credit card in partnership with the Delhi based credit card. RedCarpet, a startup focused on fintech. The new card would be available in physical format with a digital version available on the GimBooks app named GimBooks Card.
According to the company, the card would allow users to convert a specific invoice or transaction to EMI at a low interest rate through its Card Swipe to EMI feature. âUsers will be able to receive credit based on the nature of their business, location and other parameters, without going through the tedious process of elaborate documentation. In addition, they will be able to benefit from up to 45 days of interest-free credit period on each month’s expenses, âHarmeet Singh, Strategic Partnerships, RedCarpet, told Financial Express Online.
RedCarpet is basically looking to bring small business owners, especially Kirana stores, into the organized financial lending system because they don’t have a lot of credit facilities available, Singh said.
The shorter credit disbursement time through the GimBooks card “will ultimately help merchants with more flexible working capital meet their purchasing needs,” said Yash Raj Agarwal, founder and CEO of GimBooks. Moreover, it can be used for all types of transactions and is activated with an ATM withdrawal feature with minimal fees to facilitate cash withdrawals, Agarwal added.
Through this partnership, RedCarpet aims to support more than 2 lakh of small businesses next year with the new credit card. The company is also looking to penetrate deeper into the SME and Kirana segments of the country to meet their working capital needs. Self-employed people between the ages of 18 and 55 with a valid GST number from their business can apply for the GimBooks card on the app. The physical card can be used by submitting the KYC details.
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GimBooks and RedCarpet partnership comes amid Covid takeover for micro and small businesses, including kirana store owners who have been significantly affected during the pandemic due to lockdown restrictions resulting in labor movement limited work and disruption of the supply chain. While the government had introduced credit-related programs for MSMEs to overcome the working capital crisis, a number of micro and small enterprises continued to struggle with problems accessing credit. In fact, the total gross bank credit of Rs 13.20 lakh crore deployed in the MSME sector in September 2021 by banks was only 12.04% of India’s overall gross bank credit of Rs 109.56 lakh crore. , according to data from the Reserve Bank of India. , indicating the credit gap in the MSME sector.