New Delhi: State Bank of India (SBI) on August 16 opened its first-ever startup branch in Bangalore, which will be dedicated to fund and support early-stage entrepreneurs in setting up new companies till their listing on stock exchanges.
SBI, while inaugurating the 'SBI Start-Up Branch' at Koramangala, said the facility comes under a pact between the Karnataka government and SBI to further boost the state's startup ecosystem. Karnataka has been ranked the best state in the country in terms of startup ecosystem and creating new avenues for them to access credit and funding,
SBI said in a release. "It is the first in the country to provide financing to support startup growth, facilitating entrepreneurs all the way to realise their dreams," Ashwath Narayan C N, Minister for Higher Education; IT & BT, Science & Technology, government of Karnataka, said on Twitter, the release said.
The SBI earlier reported that it will work with the government of Karnataka so as to enable mechanism for startups identified by the state and supported by Karnataka Digital Economy Mission (KDEM) for availing time-bound credit based on the purchase order. The KDEM would set up a Fin-tech Innovation Hub at Mangalore focusing on financial technology.
It also facilitates, exploring options to extend CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) loans to eligible firms.