CHENNAI: Indian Bank has signed a Memorandum of Understanding (MoU) with the incubation arm of Indian Institute of Management-Bangalore (IIM-B) for extending exclusive credits to start-ups.
The incubation arm of the IIM-B, NSRCEL, is a platform, which brings together the start-ups, industry mentors and eminent academicians and researchers from the parent institution for continuous interaction.
As per the MoU, the NSRCEL will identify start-ups and MSMEs based on their credentials and past experience and refer them to the bank for financial assistance.
The bank will extend loans of up to Rs 50 crore to these start-ups under its ‘Ind Spring Board’ scheme, which is exclusively tailored for the task.
While announcing the development, Padmaja Chunduru, Managing Director and Chief Executive Officer of Indian Bank, highlighted the start-ups’ unique needs and requirement of suitable counselling and training for tapping equity and debt funding.
The Indian Bank also has a business mentoring programme, MSME Prerana, to empower such entrepreneurs through skill development and capacity building workshops in local languages.