MSMEs are vital to India’s economy, contributing 30% to GDP and 50% to exports. Lending to SMEs and mid-corporates is a strategic priority, crucial for growth. Addressing the $33 trillion credit gap for MSMEs is a core business objective.
YES BANK’s dedicated MSME Cell promotes government schemes like Credit Guarantee Schemes for Startups, subsidy programs, and cluster and skill development initiatives. This aligns the bank’s efforts with government directives. The MSME Cell provides specialized services, including financial products, advisory services, and tailored solutions for loan processing, financial planning, and accessing government incentives. Additionally, YES BANK has introduced a digital overdraft, a paperless, unsecured loan designed for bottom-of-pyramid MSME customers.
Startups can secure collateral-free funding up to Rs 10 crore through the YES Credit Guarantee Scheme for Startups. This support includes working capital and term loans, backed by a government credit guarantee from NCGTC (National Credit Guarantee Trustee Company).
In 2021, YES BANK introduced the YES MSME initiative. In FY24, the bank launched SMARTFIN, an innovative supply chain financing platform designed to provide a digital solution for onboarding and managing loans tailored to MSME customers, streamlining the supply chain financing process.
SMARTFIN provides SME customers with numerous benefits. Its digital onboarding feature simplifies the process, making it paperless and swift. The platform can digitally fetch transactional data, offering a 360-degree view of cash flow for both the anchor and the MSME. For efficient loan management, SMARTFIN helps MSMEs monitor upcoming obligations and plan their cash flow. Additionally, it integrates with MSMEs’ ERP software to support reconciliation.
Our green financing solutions aim to promote environmental sustainability, reduce carbon footprints, and enhance energy efficiency among MSMEs, contributing to a sustainable economy.
” A key initiative is the YES KIRAN program, which funds solar panel installations. It enables MSMEs to achieve zero electricity costs by financing up to Rs 3 crore for ground or rooftop solar panels for captive electricity consumption by manufacturers. The term loan offers a tenure of up to six years with a six-month moratorium, ensuring financial flexibility. Additionally, we provide end-to-end support through partnerships with leading solar panel installers. ” – Said Pental.
The YES MSME Online digital banking suite offers a comprehensive set of features for a seamless and integrated banking experience. This platform serves as a single interface for various banking needs. Key features include:
- Consolidated Account Access: View and transact all operational business accounts conveniently through an app from any location.
- Comprehensive Loan Management: Obtain a consolidated view of all loan relationships for easier tracking and management of financial obligations.
- Trade Finance Monitoring: Track bank guarantees and letters of credit in real-time, enable drawdown of packing credit facilities, and book forward contracts.
- Financial Reporting: Submit stock and debtor statements directly through the platform, streamlining regulatory compliance and financial reporting.
- Service Request Functionality: Raise and manage various service requests.
- Payroll Management: Simplify the process of managing employees’ salaries for MSMEs.
We are actively embracing emerging technologies to enhance our services and optimize processes. We have successfully integrated AI into key areas, including risk management, reconciliations, automating repetitive tasks, predictive analytics to minimize errors, and personalized marketing strategies.
We are exploring generative AI applications, focusing on chatbots and virtual assistants to enhance customer service while ensuring data security. Our AI initiatives are yielding significant benefits, such as improved budget management, strategic planning, operational efficiency, and cost reduction.
Given the sensitive nature of banking data, we are taking a measured approach and closely monitoring the development of relevant laws and policy frameworks.