Govt pushes banks to lend more to startups
The Indian government is nudging public sector banks to lend more to startups, hoping to make it easier for young businesses to get credit and join the formal banking system.
At a recent review meeting, officials even suggested setting up special bank branches just for startups.
Banks still hesitant
Banks might team up with incubators like Startup India and Nasscom to spot promising startups and fast-track loans using a new risk framework.
The government also wants annual hackathons with tech colleges to spark fintech ideas.
But despite all this, big banks like Bank of Baroda and Punjab National Bank are still hesitant—many haven't approved any startup loans in FY25, mostly because lending to new businesses can feel risky without much track record or collateral.
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