Bank of India has recently unveiled its ambitious plan to set up three dedicated centres for startups in key cities, namely Mumbai, Bengaluru, and Delhi. The initiative aligns with the government's vision of promoting innovation and entrepreneurship and falls under the Department for Promotion of Industry and Internal Trade's (DPIIT) umbrella.
With more than 93,000 registered startups eligible for loans ranging from USD 122,000 to USD 1,220,000 under the DPIIT's programme, Bank of India aims to play a significant role in supporting these fledgling ventures. Already, the bank has granted nearly USD 1.4 million to seven startups operating in the technology, restaurant, and manufacturing sectors.
Bank of India's officials are enthusiastic about expanding this initiative further. They have identified nine additional cities with thriving startup clusters, with plans to establish a total of 12 dedicated centres by 2024. The bank envisions funding around 200 startups and managing assets worth USD 61 million under this scheme.
These startup centres will provide comprehensive banking services under one roof, creating a hub for entrepreneurs in the startup ecosystem. With specialized startup desks and relationship managers, Bank of India aims to offer end-to-end financial solutions to the budding businesses. Furthermore, borrowers will benefit from a one percent interest rate discount compared to the bank's existing lending rate of 9.25%, subject to meeting the basic credit eligibility criteria. The bank pledges to disburse loans within 15 days for eligible borrowers, providing timely financial support to startups.
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