BANK OF BARODA TO LEND START-UP COMPANIES

Bank of Baroda, the State owned bank has planned to launch a new program to lend to start-ups with a plan to catch up these fast growing companies.

1. In this regard, BOB has opened dedicated branches across 10 cities, and has plans to add five more cities in the coming weeks with an aim to catch up at least 1000 such start-up companies, in a span of two years.
2. The selected branches, would be offering these start-ups
   1. Current Accounts
   2. Payment Gateways
   3. Credit Cards and
   4. Loan up to Rs. 2 crores.
3. The precondition for availing loan from the bank would be that the companies should have had an angel investment earlier or will have to be recognized by DPIIT (Department for Promotion of Industry and Internal Trade).
4. Experts from IIT, Bombay have also been engaged for a fee by the bank to help these companies in preparation of a business plan and examine it for a bank dealing.
5. An year ago BOB had ventured through a pilot program and lent Rs. 20 crores to 19 such Companies, and have had good experience which has resulted in this new initiative.
6. It is learnt that these companies have grown fast, and some have even reached a turnover of Rs. 50 crores or more.
7. The bank is said to be looking into this as a business opportunity to catch up these budding companies thus have a longer association with them as they grow further.
8. In this task the bank has also partnered with IBM, Co-working space company Springboard and legal and accounting service companies in assisting these start-ups by way of cloud credits, providing work spaces, and also legal advice, with a plan to pull these companies with these extra services.
9. As of now the bank’s special start up branches are spread across the following cities:
   1. Gurgaon
   2. Delhi
   3. Noida
   4. Bengaluru
   5. Chennai
   6. Mumbai
   7. Jaipur
   8. Ahmedabad
   9. Pune and
   10. Hyderabad
10. In the coming two weeks following cities will be added to the list
    1. Lucknow
    2. Indore
    3. Kolkata
    4. Kochi and
    5. Chandigarh