YES Bank has launched its lending program, Smart Edge for Micro, Small and Medium Enterprises (MSMEs). Through this first-of-its-kind, industry first program, an MSME can avail secured working capital limits from Rs. 1 – 3 crore in form of Overdraft (OD), Letter of Credit (LC) and Financial Bank Guarantees.
Smart Edge, a YES GST initiative is a 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%.
“Understanding the significant role of MSMEs in the growth and development of the country, YES BANK has been at the fore front 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,” said Rajan Pental, Senior Group President and Head, Branch and Retail Banking, YES Bank.