IOB - "MECHANT CREDIT CARD"- FAQ

Q1) What is "IOB MECHANT CREDIT CARD" MSME Scheme?

ANS: Merchant Credit Card shall be issued as Credit Card linked to Cash Credit/ Overdraft (Working Capital) facility sanctioned for the business purposes in conformity with RBI Master Direction on Credit Card & Debit Card (Issuance & Conduct Directions) dated April 21,2022. New & existing MSME units engaged in trading activities classified as MSME enjoying Fund Based Working Capital Limits up to Rs. 50.00 Lacs can apply.

Q2) How the "IOB MECHANT CREDIT CARD" scheme is different from Regular Credit card scheme?

ANS: Regular credit card issued based on the personal income. Where as Merchant Credit Card limit will be sanctioned as a sublimit of Working Capital limit (Cash Credit) in the form of cash credit.

Q3) Can MSE borrower avail the "IOB MECHANT CREDIT CARD" MSME loan without collateral security or third party guarantee?

ANS: Yes. No separate security is required as the loan is created as a sublimit within the over all limit of the borrower

Q4) Quantum of the M card or IOB MECHANT CREDIT CARD is mentioned as 10% of Fund Based WC limit or Rs.5.00 Lacs whichever is lower. Can I avail more than one M card?

ANS: No. Only one card can be availed.

Q5) I am not an IOB customer can I apply for IOB -" MECHANT CREDIT CARD" MSME loan?

ANS: No. Only Existing customers can apply for the loan.

Q6) What are the transaction limits, and which card company issues the M card?

ANS: The daily transaction limits for cash withdrawals, e-commerce, and point-of-sale (POS) transactions are Rs. one lakh. The card issued as a RuPay card.