YES Bank Offering Rs 5 Crore Collateral-Free Loan To Startups; Business Insurance Included

The Mumbai-based private sector bank Yes Bank Limited has launched a new initiative to strengthen the Micro, Small and Medium Enterprises (MSME) in the country.

Their initiative, called the ‘YES MSME’ is known to provide different facilities to boost the MSME sector in the country, one of which is provision of upto Rs 5 crore collateral-free funding for startups.

Lets learn in detail about this.

MSME Sector Contributes 30% to the Economy

According to the minister for MSMEs and road transport and highways, Nitin Gadkari, the MSME sector accounts for 30% of the economy, forming the backbone of the Indian economy.

The sector employs 11 crore jobs, which is why investment in the sector forms the need of the hour. 

Speaking of YES MSME, it will facilitate “speedy and easy access to funds” to MSME sector. 

It will provide curated offerings to address both business and individual needs of MSMEs, nurture new age entrepreneurs and maximise their potential.

They also stated to focus 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.

Detailed Features of YES MSME

Borrowing Channels and Customized Funding

According to a source, The lender will offer easy borrowing channels with customised funding:

• government schemes, 
• trade and finance SME IPO,
• investment banking,
• Dedicated cell called an MSME Cell,
• parameterised product solutions, and
• Fetching GST/ITR details quickly.

Sweep-in Facility

The bank will provide a sweep-in facility from the current account to savings account/fixed deposit. 

It will also offer programmes focused on increasing savings, like:

• YES Premia, 
• YES First Business, and 
• assets-focused loyalty rewards programme.

Yes Spark

The initiative will provide a collateral-free funding upto Rs 5 crore for start-ups, in conjunction with  consultancy and enterprise resource planning.

They will also provide services like fintech partnerships and digital payroll solutions.

YES BizConnect

This is a collaborative solution focused on bolstering market linkages, which will involve over 700 industry associations, along with tech-based partner solutions, knowledge sharing via advisories, MSME newsletters and discussion forums.

Business and Individual Insurance

The bank will also provide business insurance products and individual: life, health and general, through this initiative, along with wealth solutions and investments.