Yes Bank has entered into an agreement with SIDBI under which it will act as a preferred financial institution for giving loans to the small and medium enterprising customers of the latter.
Small Industries Development Bank of India (SIDBI) and Yes Bank have inked a memorandum of understanding (MoU) to channelise various banking solutions to SMEs, the private sector bank said in a statement.
"In line with its invigorating vision of SIDBI 2.0, SIDBI has been taking all such steps which can instil vibrancy in MSME eco-system and partnership with Yes Bank is an endeavour along these lines to ensure that finance reaches the doorsteps of MSMEs on the back of robust technology and efficient service delivery," Mohammad Mustafa, Chairman and Managing Director, SIDBI said.
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.
Under this, the MSMEs will avail working capital finance from SIDBI which will be channelised using Yes Bank platform.
These small enterprises will also be entitled to use Yes Bank's varied banking solutions like digital banking products through various channels, current accounts, cash management services (CMS), amongst several others.
"India's MSME sector is vibrant and dynamic, with significant contribution to the country's growth. We are fully committed to strengthen our MSME ecosystem and...providing holistic banking services that can enable Indian MSMEs to become world class and globally competitive," said Rana Kapoor, MD & CEO, Yes Bank.
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