Collateral-free Loan up to Rs. 5 crore for start-ups: Yes Bank’s initiative for MSMEs

YES BANK has recently launched YES MSME a platform for Micro, Small and Medium Enterprises (MSMEs). It is an initiative by the bank that will nourish and help to grow new start-ups in the country. The bank offers both business as well as individual needs of MSMEs. Yes Bank aims to focus on start-ups and MSMEs by launching the new platform.

Nitin Gadkari, minister for MSMEs and Road Transport and Highways, commenting on the initiative taken by Yes Bank, "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."

Rs.5 crore collateral-free funding is a seed level support towards new start-ups. It will certainly strengthen the Micro, Small and Medium Enterprises (MSMEs) in the country. The Yes Bank is planning to reduce the processing time and other difficulties in providing funding to the MSME borrowers.

YES MSME platform 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.

Key features of YES MSME platform

• 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.

• 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.

• 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.

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

• 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.