With a view to expand its working capital base, Small Industries and Development Bank of India (SIDBI) has partnered with Yes Bank to cater the working capital needs of Micro, Small and Medium Enterprise (MSME) customers.
A memorandum of Understanding was signed between SIDBI and Yes bank, where Yes bank will act as a preferred financial institution for giving loans to MSMEs.
In a statement, Chairman and Managing Director of SIDBI, Mohammad Mustafa said “in line with its invigorating vision of SIDBI 2.0, SIDBI has been taking all such steps which can instill vibrancy in MSME eco-system.”
He said that the partnership with Yes Bank is an endeavor along these lines to ensure that finance reaches the doorsteps of MSMEs on the back of robust technology and efficient service delivery.
Under this, the MSMEs will avail working capital finance from SIDBI which will be channelized using Yes Bank platform.
This will facilitate smooth flow of credit in a hassle-free manner to MSME customers availing term loan facility from SIDBI (currently offering term Loans to MSMEs at an interest rate of 8.12 per cent per annum), it said.
Besides, Yes bank would offer various banking solutions to these small enterprises like digital banking products through various channels, current accounts, cash management services (CMS) and several other services.
Talking about this agreement, Rana Kapoor MD & CEO of Yes Bank said that we are fully committed to strengthen our vibrant and dynamic MSME ecosystem which plays a significant role in country’s growth.
Further he added that with holistic banking services MSMEs will become world class and globally competitive.