HDFC Bank and MasterCard International on Wednesday announced the launch of HDFC Bank PowerPlus BusinessCard, targeted at small and medium-sized enterprises.
The new card, the first-of-its-kind in India, will help facilitate payments of business expenses incurred by corporates.
The HDFC Bank PowerPlus BusinessCard offers a total credit limit of Rs 25 lakh (Rs 2.5 million) for a company and Rs 500,000 for an individual, the highest in the market.
Moreover, the credit is offered at an attractive interest rate of 1.5 per cent per month, which is the lowest in the market.
Reward points will be awarded as per the total spend on the card in one billing cycle, adding one reward point for every Rs.100 spent on the card.
PowerPlus Business Cardholders in Chennai and Pune will be able to earn extra reward points under HDFC's Instawonderz programme (currently being piloted in these cities) as well, for purchases made at merchant shops included in the programme.
Speaking at the launch, Samir Bhatia, country head, (corporate banking), HDFC Bank said: "HDFC Bank PowerPlus BusinessCard will add yet another new dimension to our plastic offerings and we are enthused by the initial response from the SME segment. The uniqueness of the PowerPlus BusinessCard is that it will help the corporates bring about financial operational efficiencies.
"The SME segment contributes 40 per cent of industrial output and 35 per cent of the country's exports. Nearly 70 per cent of Indian companies fall in the SME segment, which is showing 15 per cent year-on-year growth.
"With liberalisation, the sector is witnessing a new dawn. SMEs are fast adopting international best practices, focusing on productivity and are at the leading edge when it comes to innovation and new global markets.
"It is estimated that 2 to 3 per cent of their budget will be allocated towards upgrading their operational efficiencies -- financial and individual business alike -- and the HDFC Bank PowerPlus BusinessCard will fulfill their needs and requirements," he said.
Anil Vinayak, vice-president, MasterCard International, South Asia, said: "It is a matter of great pride for MasterCard that we are able to collaborate with HDFC Bank in introducing this innovative credit card to the Indian market.
"The HDFC Bank PowerPlus BusinessCard MasterCard provides business travelers with simpler and more efficient electronic payment solutions and gives SMEs a competitive edge, while providing additional benefits, such as transparency, control and auditability."
Unique features of the PowerPlus BusinessCard
High limit power
The total credit limit per company can be a maximum of Rs 25 lakh (Rs 2.5 million), and Rs 500,000 for a single individual.
Lowest interest charges on cash transactions @ 1.5% per month.
Since the card is used solely for business purposes, any finance charges incurred may be tax-deductible.
International acceptance: The card is acceptable at over 23 million locations worldwide, including 1,10,000 establishments in India.
Reward points: One reward point will be awarded for every Rs100 spent on the card.
Insurance: Liability cover upto Rs 100,000 in cases of lost/stolen cards.
Travel benefits: 3% discount on leading airline tickets on all fares with free home delivery (if purchased through HDFC Bank's authorised travel agents).
- IBTC membership: which gives discounts upto 50% at over 10,000 star hotels worldwide and upto 30% on rentals of Hertz Rent-a-Car at over 7500 locations worldwide.