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Home >Industry >Banking >YES BANK new initiative for MSME: 5 crore loan without collateral for startups, other features

To strengthen the Micro, Small and Medium Enterprises (MSMEs), YES BANK has recently launched YES MSME — an initiative that will facilitate "speedy and easy access to funds" to MSME sector. The bank will provide "curated offerings to address both business and individual needs of MSMEs, nurture new age entrepreneurs and maximise their potential," the lender said in a statement.

"The YES MSME proposition focuses on supporting MSMEs in expanding their business, sustaining momentum and accelerating growth through solutions across lending, deposits, insurance, customized and segmented digital solutions for retail, manufacturing, wholesale, trade and service providers. This also includes special current account offerings for the self-employed segment," the lender said.

The start-ups can avail up to 5 crore collateral-free funding under YES MSME initiative. The bank also aimed to reduce the turnaround time for processing MSME loans. The lender will also offer other features include pre-approved commercial credit cards, advisory and wealth management solutions along with dedicated relationship managers.

Commenting on this initiative, Nitin Gadkari, minister for MSMEs and road transport and highways, said, "The MSME sector is the backbone of the Indian economy and accounts for 30% of the economy creating 11 crore jobs so far. Investment in the sector is the need of the hour and we are hopeful that concerted efforts by the industry and the Government will help expand it."

Key features of YES MSME are

1) The bank is offering easy borrowing channels with customised funding — government schemes, trade and finance SME initial public offering (IPO), investment banking (IB), a dedicated MSME Cell, parameterised product solutions for ease along with quick fetching of GST/ITR details, enabling faster access.

3) The sweep-in facility from the current account to savings account/fixed deposit will be available. There will be focused programmes for more savings– YES Premia, YES First Business and assets-focused loyalty rewards programme

4) YES Spark offers collateral-free funding up to 5 crore for start-ups, along with consultancy and enterprise resource planning. Fintech partnerships and digital payroll solutions will also be provided.

5) YES BizConnect – a collaborative solutions to build strong market linkages involving over 700 industry associations will be offered along with tech-based partner solutions, knowledge sharing via advisories, MSME newsletters and discussion forums.

6) Business insurance products and individual – life, health, general will be available under this initiative. Moreover bank will provide wealth solutions and investments.

Speaking at the launch of YES BANK MSME, Prashant Kumar, managing director and chief executive officer said, "The Bank’s enhanced value proposition will improve access to finance for MSMEs and support their technology upgrade, among other customer-focused measures. I am confident that our measures will have tangible outcomes and contribute to the collective vision of a self-reliant nation."

The unique endeavour is yet another step for a meaningful push to increase the GDP contribution of the MSME sector, which came under strain in the aftermath of COVID-19, the private lender added.

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