GST: Yes Bank launches an industry first GST backed OD facility for MSMEs–Economic Times–14.04.2018

Yes Bank has announced the launch of ‘Yes GST’, an OD (over draft) facility for Micro, Small and Medium Enterprises (MSMEs).

Through this 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 an MSME against mortgage of residential or commercial property. The sanctioned amount can be utilised 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. The 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 Bank said in a statement, “Through this, we hope 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.

The bank had launched ‘Yes GST programme’ last year.

via GST: Yes Bank launches an industry first GST backed OD facility for MSMEs

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