News | IndusInd Bank Partners with DPIIT to Provide Collateral-Free Loans to Startups

IndusInd Bank Partners with DPIIT to Provide Collateral-Free Loans to Startups

News

23 May 2025

1 min read

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In a strategic move to bolster India's startup ecosystem, IndusInd Bank has signed a Memorandum of Understanding (MoU) with the Department for Promotion of Industry and Internal Trade (DPIIT). This collaboration aims to provide tailored banking solutions to DPIIT-recognized startups, facilitating easier access to credit and fostering innovation across the nation.

Under this partnership, eligible startups can avail collateral-free loans with a guarantee cover of up to ₹20 crore through the Credit Guarantee Scheme for Startups (CGSS). Additionally, the guarantee fees for debt funding have been reduced across 27 champion sectors, making financing more accessible and affordable for startups operating in these key areas.

"This strategic partnership brings together the strengths of DPIIT’s Startup India initiative and IndusInd Bank’s financial expertise to create opportunities for startups, innovators, and entrepreneurs nationwide," stated IndusInd Bank.

The collaboration is expected to play a pivotal role in nurturing the next generation of Indian unicorns and positioning India as a global hub for entrepreneurship. By combining policy support with financial innovation, IndusInd Bank and DPIIT are committed to fostering a conducive environment for startup growth and innovation.

Reference: E conomicTimes