Thiruvananthapuram: In whhat could be seen as a major fillip to the startup ecosystem in the state, Kerala Startup Mission (KSUM) and YES Bank have decided to join hands to provide a host of startup-focused corporate and commercial banking services. KSUM is the nodal agency of the Kerala Government for entrepreneurship development and incubation activities in the state.
A Memorandum of Understanding (MoU) to this effect was signed by Dr. Saji Gopinath, CEO, KSUM and Sanil Chorinchath, Vice President, Transaction Banking, YES Bank, here on Wednesday.
As per the MoU, YES Bank will provide and render the platforms/services to the startups, subject to the relevant contractual arrangements. It will offer Special Current Account Proposition to all the associated startups of KSUM, including a ‘no minimum balance commitment’ for one year after starting a current account with the bank.
The bank will look at structured financial solutions for startups recommended by KSUM with less than three years of operating history under the Receivable Discounting programme, on a case-to-case basis. It will also provide structured loan offerings for incubators.
YES Bank offers a credit facility up to Rs 1 crore through Credit Guarantee Scheme for Stand Up India (CGSSI), under guarantee given by the Central Government.Moreover, the bank will offer a host of services through strategic third party partnerships. The services include investor interface; acceleration and mentoring; financial advisory; and pro-working space.
Besides business credit cards facilities for the startups, it also gives logo acknowledgement on website and collaterals under ‘Partners’ section of YES Head Startup (YHS) Programme.