YES BANK to offer MSMEs loans upto Rs 3 Cr through its 'SMART EDGE' lending programme
YES BANK, India’s fourth largest private sector bank, announced in a statement the launch of its lending programme 'Smart Edge' for Micro, Small and Medium Enterprises (MSMEs).
Through this programme, an MSME can avail secured working capital limits from Rs 1 crore to Rs 3 crore in the form of Overdraft (OD), Letter of Credit (LC), and Financial Bank Guarantees.
Smart Edge, a YES GST initiative, is a surrogate lending model wherein no financial statements will be required and credit appraisal will be done basis data-points pulled from GST returns and operative bank accounts of the MSME.
A scorecard running in the background will analyse credit indicators from both the sources individually and will factor in the interplay between the two as well. Basis the score generated, the collateral cover requirement will be ascertained, and it will start from 85 percent.
Rajan Pental, Senior Group President and Head, Branch and Retail Banking, YES BANK, said:
“We are committed to harnessing the power of data and technology to create easy access to finance for MSMEs. The Smart Edge programme will enable simple and faster processing of credit for our customers.”
MSMEs can apply through any of the bank’s branches, following which a YES BANK representative will get in touch with the applicant. In terms of essential documentation, MSMEs need to submit GST returns, operative bank account statements for the last 12 months for assessment along with hygiene documents such as KYC in order to avail this facility.
Collateral acceptable to the bank will be taken as security for the loan.
In June 2019, YES BANK launched its Click OD (overdraft) facility for the bank’s existing MSME customers to let them avail unsecured OD up to Rs 10 lakh digitally without any documentation.
This is being offered to selected customers based on their account conduct and credit history. The OD facility is an end-to-end digital offering where the limit will be disbursed through the bank’s MSME portal. The customer will be required to login on the portal and follow a few steps.
The bank said it is targeting a disbursement of Rs 100 crore for FY 2019-20 through the YES MSME portal. YES Bank’s total exposure to MSMEs as on March 31, 2019, has crossed Rs 42,000 crore.