India’s YES BANK is rolling out new financial services for startups across the country through a partnership with Kerala Startup Mission, a government initiative to support entrepreneurs.
Reports in The Hindu Business Line on Thursday (June 28) said YES BANK and Kerala are joining forces to introduce corporate banking services for startups, including a new current account offering without minimum balance requirements. Certain services will be provided on a case-by-case basis, the companies explained. Kerala will recommend startups that have been in operation for less than three years, bridging them to YES BANK for structured loan offerings and other services.
Kerala’s CEO Saji Gopinath and YES BANK’s Executive Vice President Sanil Chorinchath signed a Memorandum of Understanding (MOU) to officiate the partnership.
Their collaboration isn’t YES BANK’s first with a government group aimed at supporting small- to medium-sized businesses (SMBs) and startups. The bank works with the Credit Guarantee scheme for Stand Up India to provide financing to startups. According to reports, YES BANK plans to link startups with additional services through other third-party partnerships, including mentoring, financial advisory and workspace services.
Other recent initiatives from YES BANK to boost India’s small business sector include a program designed to use Goods and Services Tax (GST) data to facilitate financing to SMBs, reports said earlier this year. Dubbed YES GST, the solution is an overdraft facility that uses annual turnover and tax payment information to determine the value of financing provided. According to the bank, the program does not require a deeper examination of businesses’ financing, and prevents borrowers from having to use property mortgages as collateral.
YES BANK also launched an accelerator program last year in an effort to promote B2B FinTech innovation. The FI’s first group of 12 startups chosen for the program operate in an array of areas, including artificial intelligence, KYC, foreign exchange, small business cash flow management, cybersecurity and more.