SBI pledges Rs 2 cr collateral-free assistance for startups

Bengaluru, July 8 (KNN) State Bank of India (SBI) will offer upto Rs 2 crore collateral-free financial assistance to startup entrepreneurs across the country.

The public sector bank has decided to float dedicated branches to offer the financial assistance starting with the state of Karnataka, as per The Hindu.

It has partnered with Karnataka Digital Economy Mission (KDEM) which aims to grow the size of the state’s digital economy, to open its first exclusive branch for entrepreneurs.

Under the MoU which was signed on Friday, SBI would be able to offer financial support to startups that are recognised by the state government and supported by KDEM.

The objective of this initiative is to boost the potential of unused funds that were lying in the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTSME).

Rana Ashutosh Kumar Singh, SBI Deputy Managing Director said, “CGTSME is underutilised. We are trying to design a product for startup assistance to make it more focused and effective. We are starting it with Karnataka, the startup capital. We will shortly announce the name of the initiative and further details.”

CGTMSE is a scheme set up jointly by the Ministry of MSME and SIDBI to catalyse flow of institutional credit to Micro and Small Enterprises.

The bank will also open its first exclusive start-up branch at Innovation Tower, at HSR Layout, in Koramangala, Bengaluru.

Subsequently, KDEM will help the bank open more such branches in Mysore, Mangalore, Hubballi and Belagavi.  (KNN Bureau)