Indian Bank has entered into an MOU with the Society for Innovation and Development (SID), an initiative of Indian Institute of Science, Bengaluru for extending exclusive credit facility to Start-ups and MSMEs.
SID provides support to the MSME sector by providing joint research and development arrangements and technical & financial support for incubation and acceleration of high-end technology products under its department named “TIME2.”(Technology Innovation for Midsized Enterprises).
Under the MOU, SID will identify the start-ups and MSMEs based on their credentials and past experience and will refer the list of such members who require financial assistance to the Bank.
This initiative is a part of the Bank’s scheme “Ind Spring Board for financing Start-ups” and will empower Start-ups and MSMEs to realise their research efforts powered by financial support from the Bank and backed by incubation facility offered by SID.
The bank will extend loans of up to Rs 50 crore to these start-ups for working capital requirements or for purchase of machinery and equipment. As the name indicates, this initiative, which is mutually beneficial for both Bank and IISc, will be the spring board for start-ups to realise their ambitions.
Indian Bank had also recently launched “MSME Prerana” programme to empower MSME entrepreneurs through skill development and capacity building workshops in local languages.