Indian Bank in collaboration with IIT-Madras Incubation Cell (IITMIC) has launched an initiative for funding start-ups. Under the initiative -- IND Spring Board -- IITMIC will refer start-ups with proven technology and established cash flows to the bank and also extend advisory to the bank on the business model. The lender will extend loans of up to Rs 50 crore to these start-ups for their working capital requirements or purchase of machinery and equipment, among others.
Under the initiative, loans up to Rs 2 crore are backed by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme of the government. The initiative will provide financing support to start-ups and will be a game changer in the banking industry.
Indian Bank was established as a part of the Swadeshi movement. The Bank provides a wide spectrum of banking products and services.
