New Delhi, July 24 (KNN) In a bid to meet the working capital crisis faced by Micro Small and Medium Enterprises (MSMEs), Yes Bank has announced the launch of its lending program, Smart Edge.

This is first-of-its-kind, industry-first program, through which MSMEs can avail secured working capital limits from Rs 1 to 3 crore in form of Overdraft (OD), Letter of Credit (LC) and Financial Bank Guarantees.

It is a kind of 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 percent.

Commenting on the launch, Senior Group President and Head, Branch, and Retail Banking, YES BANK, Rajan Pental 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.”

MSMEs can apply through any of the Bank’s branches, following which a YES BANK representative will get in touch with the applicant. In terms of essential documentation, MSMEs need to submit Goods and Services Tax (GST) returns, operative bank account statements for the last 12 months for assessment along with hygiene documents such as Know Your Customer (KYC)  in order to avail of this facility. Collateral acceptable to the Bank will be taken as security for the loan.