The first-of-its-kind 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 MSMEs.
MUMBAI: For easing working capital woes of country’s MSMEs, Yes Bank has announced a unique lending program through which an MSME can avail secured working capital limits from Rs. 1 – 3 crore in the form of Overdraft (OD), Letter of Credit (LC) and Financial Bank Guarantees.
Coined Smart Edge, the first-of-its-kind 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 analyze 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, which will start from 85%.
Commenting on the launch, Rajan Pental, Senior Group President and Head, Branch and Retail Banking, Yes Bank, said, “Understanding the significant role of MSMEs in the growth and development of the country, Yes Bank has been at the forefront of providing financial solutions to the MSME sector. We are committed to harnessing the power of data & technology to create easy access to finance for the MSMEs, and the Smart Edge program will enable simple and faster processing of credit for our customers.”
For availing loans under the programme, MSMEs need to submit GST returns, operative bank account statements for the last 12 months for assessment along with hygiene documents such as KYC. Collateral acceptable to the Bank will be taken as security for the loan.
Source- Economic Times.