Mumbai, Aug 2 (IANS): Indian Bank has entered into an MoU with the Society for Innovation and Entrepreneurship (SINE), IIT Bombay, for extending exclusive credit facility to startups and MSMEs.

SINE provides support to the MSME sector by providing joint research and development arrangements and technical and financial support for incubation and acceleration of high-end technology products.

Under the MoU, SINE will identify the startups and MSMEs based on their credentials and past experience and will refer the list of such members who require financial assistance to the Indian Bank.

This initiative is a part of the bank's ‘Ind Spring Board for financing Startups' scheme and will empower startups and MSMEs to realise their research efforts powered by financial support from the bank and backed by incubation facility offered by SINE. The bank will extend loans of up to Rs 50 crore to these startups for their working capital requirements or purchase of machinery, equipment etc.

Speaking on the occasion, Padmaja Chunduru, MD & CEO of Indian Bank, highlighted the startups' need to be suitably counselled about the significance of equity and debt funding.