YES Bank plays a crucial role in the MSME’s growth. It supports the MSMEs through its different initiatives and platforms. MSME (Micro, Small, and Medium Enterprises) plays a crucial role in supporting the economy. They are the backbone of the Indian economy. While YES Bank is currently acting as the backbone of the MSMEs. We all know that MSMEs contribute almost 30% to the Indian economy. Apart from that, it contributes to 45% of the exports. Let us have a look at the YES Bank’s support to MSME below.
How YES Bank Acts As A Backbone Of MSMEs?
YES Bank is acting as the backbone of the Indian economy in several ways. The MSMEs work on a smaller level. It helps in creating jobs for the people in the society. It also helps in providing the goods at a cheaper price. MSMEs can reach the deeper roots of the economy and connect with consumers on a local level. The government is launching a lot of initiatives to help the MSMEs gain a powerful stand in the economy. Recently, the government launched a 45-day payment rule. Apart from that, it also launched the facilities to promote easy credit facilities to the MSMEs. The government also launched the Credit Line Guarantee Scheme (ECLGS) to help the MSMEs overcome financial issues during the pandemic.
When it’s a matter of helping MSMEs, YES Bank is also no less than anyone. The MSMES gets help from the YES BANK in credit also. YES Bank meets the banking needs of the MSMEs the best. It has several products, especially for promoting MSMEs growth. These products help the MSMEs in meeting the following needs:
- cash credit needs
- overdrafts
- term-loans
- cash management
- digital solutions
- export-import financing
- foreign exchange
Apart from that, it also helps in providing Flexible and Scalable banking solutions. Its current account is known as Freedom Flexi. This is specially crafted for the MSMEs to provide them flexibility. Thus, YES Bank is the backbone of the MSMEs for sure. They often face a lot of difficulty in their daily tasks. The major two issues MSMEs face are payment and credit issues. MSMEs receive the payment after a year or nine months. However, it is still an ideal scenario.
If we talk about the delayed payments, many MSMEs have pending payments for even a decade. Apart from that, they don’t get credit easily. This is because the creditors don’t get assurance that MSMEs would be able to pay the amount back as they don’t have a regular payment cycle.