Mumbai : YES BANK, India’s fourth largest private sector Bank,announced the launch of ‘YES GST’, an OD (over draft) facility for Micro, Small and Medium Enterprises (MSMEs).Through this first-of-its-kind, industry first initiative, an MSME can avail OD up to Rs. 1 crore, based on their annual turnover, backed by GST returns. Any additional assessment of balance sheet or bank statements will not be required.
This OD facility can be availed by a MSME against mortgage of residential or commercial property. The sanctioned amount can be utilized by the MSME either fully or in tranches. The bank is targeting a disbursement of Rs 1,000 crore through YES GST for financial year 2018-19. YES BANK’s total exposure to MSMEs as on March 31, 2018 has crossed Rs 32,500 crore.
Commenting on the initiative, Rajan Pental, Group President and Group Head – Branch and Retail Banking, YES BANKsaid, “MSMEs are the backbone of our economy and in line with the Government’s agenda, YES BANK is committed to supporting MSMEs in their growth story.Through the launch of this unique product, the Bank hopes to address MSME’s need for faster and hassle free access to working capital finance, thereby supporting them in their endeavour to be sustainable and competitive.”
In order to apply, MSMEs can raise a query on the Bank’s website following which a YES BANK representative will get in touch with the applicant. In terms of essential documentation, MSMEs need to submit GST returns and residential or commercial property papers in order to avail this facility.
YES BANK had launched ‘YES GST program’ last year to help MSMEs understand the impact of the changes and prepare them for migration to the new GST tax system.Till date, the Bank has conducted 112 awareness workshops, thereby impacting ~9,500 MSMEs through the program.
YES BANK in line with its Responsible Banking ethos is committed to supporting the MSME sector and giving it the much needed thrust to put it on a sustainable growth path. YES BANK has been playing a pivotal role in strengthening the MSME sector, testimony to which is the recent recognition as the ‘Best Bank for Small and Medium Enterprises (SMEs) – India’at the Asiamoney Country Awards 2018,organized by Asiamoney, one of the leading global financial institutions. The Bank has been mobilizing capital to extend support to MSMEs & women entrepreneurs and has raised an aggregate funding of USD 415 million in partnership with OPIC and Wells Fargo, till date.