Yes Bank Announces ‘YES KIRAN’ Solar Financing Scheme For MSMEs

Private sector bank – Yes Bank, which has come back to life after an RBI led intervention – has come up with a novel lending proposition that will help expand the solar power systems in the country in decentralised manner. Yes Bank has announced the launch of its new lending scheme called ‘YES KIRAN’ under which it offers financial assistance to Micro, Small and Medium Enterprises (MSME) manufacturers that want to install solar power panels on their buildings or premises.

Targeting the  MSME sector that make up 30 per cent of India’s GDP, Yes Bank’s lending proposition will also aim help in stepping up cost efficiency of the enterprises as solar installations will axe down power and fuel expenses.

Yes Bank maintains that its one of the key lenders in India towards clean energy space.

Yes Bank has already collaborated with leading solar panel makers like Tata Power Solar, Goldi Solar, Loom Solar,  Panasonic Solar Power System to ensure smooth transition to renewable energy solutions by MSME sector.

Dhavan Shah, Country Head, SME Banking, Yes Bank, said, “ YES KIRAN is a testament to the effort to empower MSMEs, through which we aim to bring hassle-free financial solutions that are focused at encouraging MSMEs to adopt solar energy led best practices, and help them achieve their sustainability goals by freeing up more funds for their business related requirements.”

Financing for solar projects has been finally improving in recent years, after a period when few institutions were willing to take bets purely on the project. LArge developers raising money did so on the strength of their balance sheets, with smaller firms left out of the loop. Funding options for these firms, both at industry and customer end is considered critical for the country to meet its medium to long term goals for renewable energy.

In November, 2022, Bank of Baroda (BoB) and Aerem Solutions Pvt Ltd (ASPL) along with its subsidiary, Aerem Finance Pvt Ltd (AFPL), agreed for the financing of rooftop solar power projects meant for captive use the MSMEs. Bank of Baroda would provide collateral-free loans and at rates that are affordable to the MSMEs for installation of captive solar rooftop projects.