IOB to fund budding entrepreneurs

Bank will extend finance up to Rs 50 lakh for entrepreneurs in the manufacturing sector and Rs 25 lakh for services sector

Public sector Indian Overseas Bank would provide finance up to Rs 50 lakh to micro, small and medium enterprises in the manufacturing sector while Rs 25 lakh for service sector.

Towards this initiative, IOB general manager - MSME Naval Gupta exchanged documents with Bharatiya Yuva Shakti Trust, founder trustee, Lakshmi V Venkatesan, in the presence of bank chairman, M Narendra recently, a bank statement here said.

Bharatiya Yuva Shakti Trust (BYST) is a not-for-profit organisation supported by the Confederation of Indian Industry (CII) enabling youngsters to become entrepreneurs.

According to the MoU, the Chennai-based bank would extend finance up to Rs 50 lakh for entrepreneurs in the manufacturing sector and Rs 25 lakh for services sector to eligible entrepreneurs sponsored by BYST. BYST would provide the business mentoring, marketing, training and development support to the youngsters.

In the past 20 years, BYST has set up 8 regional clusters across the country and has financed around 2,900 entrepreneurs, it said.

“Now, with this partnership, there is a focused mechanism to handhold and guide the entrepreneur towards their success. Mentoring is there to take care of a professional and emotional needs which are important for a new person in business,” Narendra said.