HSBC India, a foreign lender, has offered a $250 million loan to Indian businesses. The bank did not explain when the money will be disbursed.
The money will go to high-growth, tech-led firms in the world’s third-largest startup environment, according to the lender.
The loan will be overseen by the lender’s commercial banking department, which comes amid heightened attention on startups’ debt needs by local financial intermediaries and a ‘funding winter’ damaging equity investment to the industry.
In India, the commercial banking sector had a 42 percent increase in profit in 2021, with $265 million compared to $187 million the previous year.
According to the bank, loans to small and medium businesses increased threefold from $300 million in 2018 to $1 billion in 2021.
“We recognise the need for startups to access finance to support their growth ambitions and scale up their business. This segment is poised for significant growth and we look forward to supporting its growth momentum,” its head for commercial banking in the country Rajat Verma said.
