Indian Bank Inks MoU with Tata Motors to Offer Commercial Vehicle Financing Solutions

Indian Bank, one of India’s leading public sector banks, has signed a Memorandum of Understanding (MoU) with Tata Motors, India’s largest commercial vehicle manufacturer to offer attractive financing solutions to Tata Motors commercial vehicle customers and authorised dealerships across the country.

The bank will offer customised financial packages with competitive interest rates and streamlined credit processing. This partnership will provide tailored financial solutions for Tata Motors’ entire commercial vehicle portfolio including LNG (Liquefied Natural Gas) and electric range of commercial vehicles.

Tata Motors and Indian Bank will also significantly scale up their partnership on dealer financing.

Speaking on this announcement, Mr. Ashutosh Choudhury, Executive Director, Indian Bank, said, “We are elated to sign a MoU with Tata Motors to offer tailored financial solutions for their dealerships and fleet operators. Our financial packages will help both customers and dealers achieve their business objectives while enhancing overall financial efficiency. We look forward to working closely with Tata Motors to help their customers achieve their business goals.”

Commenting on the initiative, Mr. Rajesh Kaul, Vice President & Business Head – Trucks, Tata Motors, said, “We are happy to sign a MoU with Indian Bank, this partnership will help provide easy financing solutions for our customers. By streamlining credit access and offering seamless financing options, we aim to strengthen financial ecosystem for our dealer network, helping them scale their business while providing enhanced convenience to our valued customers.”

Tata Motors offers the widest commercial vehicle portfolio spanning from sub-1-tonne to 55-tonne cargo vehicles and 10-seater to 51-seater mass mobility solutions. These robustly engineered commercial vehicles are further complemented by a range of value-added services for comprehensive vehicle lifecycle management, through its Sampoorna Seva 2.0 initiative. With Fleet Edge – Tata Motors’ connected vehicle platform for optimal fleet management, which enables operators to further increase the uptime of its vehicles and reduce the total cost of ownership, and 24×7 support from India’s widest service network, Tata Motors continues to establish new benchmarks in holistic transportation solutions.

Founded on August 15, 1907, Indian Bank is a prominent Public Sector Bank in India, with the Government of India holding 73.84% of its shares (as of 30th June’ 2024). Recognized as the first public sector bank to install an ATM in Madras in 1989, it operates 5,846 branches (including 3 Digital Banking Units) across diverse regions: 1,983 rural, 1,531 semi-urban, 1,173 urban, and 1,159 metros. The Bank also has 3 overseas branches and 1 International Banking Unit (IBU). As part of its digital transformation drive Indian Bank under Project WAVE, is redefining customer experiences and optimizing services. In Q1 FY25, the Bank generated an impressive ₹36,678 crores via digital channels, while also witnessing a sharp surge in mobile banking and credit card users. Under Supply Chain Finance, the Bank provides end-to-end financing solution through Online platform for meeting working capital requirements of Dealers and Vendors. Supply Chain Finance product of the Bank has made strong strides in recent past and on-boarded many leading companies in automobile and other sectors.

Union Bank of India Signs MoU with SIDBI for Co-Financing arrangement of MSMEs

Union Bank of India today signed a Memorandum of Understanding (MoU) with Small Industries Development Bank of India (SIDBI) for a Co-Financing arrangement for MSMEs. The MoU was signed by Shri Lal Singh, Chief General Manager, Union Bank of India and Shri Vivek Kumar Malhotra, Chief General Manager, SIDBI. SIDBI is country’s principal financial institution engaged in the Promotion, Financing and Development of Micro, Small and Medium Enterprises (MSME).

Shri Lal Singh, CGM, Union Bank of India and Shri Vivek Kumar Malhotra, CGM, SIDBI on singing of MOU

Under the MoU, Union Bank of India would consider Joint financing/ Co-Financing with SIDBI to Projects/Units in the MSME. This MoU would help the Banks to increase their customer base, while helping the MSMEs to meet their funding requirements. 

The key highlights of the arrangement include joint identification of viable projects and term loan and working capital financing to MSMEs. Initially the arrangement would be at specific centers and once the arrangement stabilizes at these centers, more locations would be covered.

Speaking on the occasion, Shri Lal Singh, CGM (MSME), Union Bank of India, said “MSME is one of the key sectors of our Indian Economy contributing to GDP, Exports, Manufacturing Output, Employment, Women Empowerment etc. MSME is one of the focused areas of the Bank and at Union Bank of India, we aim to become Bank of 1st choice for MSMEs. This tie-up with SIDBI aids in realizing the Bank’s vision to have increased credit flow to the MSME sector and extend operational convenience to the MSME clientele. Under partnership, Union Bank of India through its Pan India branch network can provide general Banking products like Current Accounts, Savings Accounts, Working Capital facilities and other related services to the MSME Customers of SIDBI.”

Also, speaking on the tie-up arrangement, Shri Vivek Kumar Malhotra, CGM, SIDBI reiterated SIDBI’s commitment towards timely financing for MSMEs across all sectors.

This comes a day after SIDBI signed MoU with Delhi Skill and Entrepreneurship University to nurture aspiring youth to infuse entrepreneurship and enterprise as preferred career choice.

Last month, Union Bank of India becomes the first public sector Bank to go live on the Account Aggregator Ecosystem for participating in Govt. of India’s Digital Initiatives.

Earlier in March, SIDBI, which is India's apex Financial Institution for financing and development of MSMEs, has acquired 7.84% stake in Open Network for Digital Commerce (ONDC) through an investment of Rs 10 crore. ONDC was incorporated in last year with an objective to create a first of its kind open public digital infrastructure to develop and transform the Indian digital commerce ecosystem for both goods and services.

How To Raise Funds For Startups In India

Money is very important and it becomes even more important when it comes to a startup. You have an idea and a passion to work on it with all you have got but money is where all the problem starts. This guide illustrates one way how to raise money for a startup, especially for first-time entrepreneurs.

Angel Investing -

You can start by looking for angel investors for your startup. Angel investors are basically successful entrepreneurs who have made their fortune in the business and are now looking to invest their money back into startup businesses. Whether it’s Facebook, Google or Twitter, all these world famous businesses have had angel investors in the past. Angel investors bring more than just money to the startups. They come with a bank of connections and advice which can prove to be very beneficial to the startup. Some of the biggest Angel networks that connect entrepreneurs to investors are Investors Circle, Golden Seeds and Tech Coast Angels. Angel investors can indeed prove to be the Angels for your startups.

Bank Financing -

This is the most famous and used means to raise money for your startup. When taking a banking loan, your banker may demand that you have your loan agreement guaranteed by the Small Business Association (SBA). Once the agreement is guaranteed by the SBA, the loan is approved. The SBA is basically a government agency which guarantees up to eighty percent of the value of the loan for applicants. Only applicants who meet their criteria are guaranteed by the association. If you don’t want to go the SBA way, you can also use some other form of security such as your home etc. to get your loan approved.

Business Partner -

Let's assume that you've a brilliant idea for a business but have no money to invest in it. You can either drop the idea altogether or turn to your wealthy friend or acquaintance for help. Many of the top businesses have received seed funding from a co-founder. While selecting a business partner, you’ve to be extra careful about certain points. You should make sure that their own business aspirations and goals are in sync with yours because as a business partner, he/she will also have a control over the direction of the business.

Family and Friends -

Family and friends are the ones who stand with you through your thick and thin. If you don’t want to take the pressure of a bank loan, you always have an option of turning to your friends and family for help. They can loan you money on flexible and mutually agreed terms and conditions.

Crowd funding -

Though Crowd funding as a means of raising money for startups is still in its initial stages, it is slowly becoming popular with the young entrepreneurs. Crowd funding as the name suggests means receiving funding from the crowd. In this, the public makes use of their own personal funds to fund your startup idea. You just need to put your idea on a crowd funding idea and people can then choose how much money they want to give to your idea. Many of the crowd funding sites work on a reward based model where people who agree to invest in a particular business idea are given a reward such as the product that is going to be produced. Some famous crowd funding sites include Fundable, Indiegogo and Kicstarter.

Venture Capital -

You even have the option of turning to Venture Capitalists to raise funds for your startup. Venture Capitalists are people who invest in early stage businesses that have a high potential to grow in future. They traditionally receive equity in the startup business in return for funding it. However, nowadays the trend involves demanding a mixture of debt financing and equity.

Convertible Debt -

This means of raising money has become popular in the last few years. It has become popular because of its phenomenal success with Y Combinator Startups. Yuri Miller and SV Angel have offered $150,000 in convertible debt to every Y Combinator Startup. A convertible note by an investor converts the debt to equity in sometime in the future. This conversion is at a discount to the next funding round that the business raises and has a cap, which means if the business is successful in raising a huge round, the debt investors have protected themselves from getting diluted. In Convertible debt, you don’t have to set a valuation. This is taken care in the next round of financing. Plus, it helps to keep the costs lower as it requires less paperwork.

Second Mortgage -

You even have the option of second mortgage for raising money for your startup.

Credit Cards -

They can be used as a temporary measure between getting your company started and obtaining other financing such as getting your bank loan approved. Most of the credit cards have interest rates as high as 10-20%, hence they are not considered a good source of loan term capital. Many entrepreneurs in the past have used credit cards as a source of money for their businesses when they had no other option. Even Google, the search giant, was funded by credit cards by its founders in the mid 1990s.

Incubator Funding -

You can even get your startup incubated in incubators in India such as Microsoft Ventures (Bangalore), Startup Village (Kerala), IAN Incubator (Delhi), CIIE, IIM-Ahmedabad or global incubators like 500Startups, TechStars or Y-Combinator. These incubators offer more than just money to the startups. They even provide the startup with the much needed guidance and mentorship along with the money. The startups get to be a part of a huge network of successful entrepreneurs that helps them in getting in touch with potential customers and partners. At the end of the program, the startups are provided with an opportunity to present their ideas in front of venture capitalists and angel investors.

How To Raise Funds For Startups In India

Money is very important and it becomes even more important when it comes to a startup. You have an idea and a passion to work on it with all you have got but money is where all the problem starts. This guide illustrates one way how to raise money for a startup, especially for first-time entrepreneurs.

Angel Investing -

You can start by looking for angel investors for your startup. Angel investors are basically successful entrepreneurs who have made their fortune in the business and are now looking to invest their money back into startup businesses. Whether it’s Facebook, Google or Twitter, all these world famous businesses have had angel investors in the past. Angel investors bring more than just money to the startups. They come with a bank of connections and advice which can prove to be very beneficial to the startup. Some of the biggest Angel networks that connect entrepreneurs to investors are Investors Circle, Golden Seeds and Tech Coast Angels. Angel investors can indeed prove to be the Angels for your startups.

Bank Financing -

This is the most famous and used means to raise money for your startup. When taking a banking loan, your banker may demand that you have your loan agreement guaranteed by the Small Business Association (SBA). Once the agreement is guaranteed by the SBA, the loan is approved. The SBA is basically a government agency which guarantees up to eighty percent of the value of the loan for applicants. Only applicants who meet their criteria are guaranteed by the association. If you don’t want to go the SBA way, you can also use some other form of security such as your home etc. to get your loan approved.

Business Partner -

Let's assume that you've a brilliant idea for a business but have no money to invest in it. You can either drop the idea altogether or turn to your wealthy friend or acquaintance for help. Many of the top businesses have received seed funding from a co-founder. While selecting a business partner, you’ve to be extra careful about certain points. You should make sure that their own business aspirations and goals are in sync with yours because as a business partner, he/she will also have a control over the direction of the business.

Family and Friends -

Family and friends are the ones who stand with you through your thick and thin. If you don’t want to take the pressure of a bank loan, you always have an option of turning to your friends and family for help. They can loan you money on flexible and mutually agreed terms and conditions.

Crowd funding -

Though Crowd funding as a means of raising money for startups is still in its initial stages, it is slowly becoming popular with the young entrepreneurs. Crowd funding as the name suggests means receiving funding from the crowd. In this, the public makes use of their own personal funds to fund your startup idea. You just need to put your idea on a crowd funding idea and people can then choose how much money they want to give to your idea. Many of the crowd funding sites work on a reward based model where people who agree to invest in a particular business idea are given a reward such as the product that is going to be produced. Some famous crowd funding sites include Fundable, Indiegogo and Kicstarter.

Venture Capital -

You even have the option of turning to Venture Capitalists to raise funds for your startup. Venture Capitalists are people who invest in early stage businesses that have a high potential to grow in future. They traditionally receive equity in the startup business in return for funding it. However, nowadays the trend involves demanding a mixture of debt financing and equity.

Convertible Debt -

This means of raising money has become popular in the last few years. It has become popular because of its phenomenal success with Y Combinator Startups. Yuri Miller and SV Angel have offered $150,000 in convertible debt to every Y Combinator Startup. A convertible note by an investor converts the debt to equity in sometime in the future. This conversion is at a discount to the next funding round that the business raises and has a cap, which means if the business is successful in raising a huge round, the debt investors have protected themselves from getting diluted. In Convertible debt, you don’t have to set a valuation. This is taken care in the next round of financing. Plus, it helps to keep the costs lower as it requires less paperwork.

Second Mortgage -

You even have the option of second mortgage for raising money for your startup.

Credit Cards -

They can be used as a temporary measure between getting your company started and obtaining other financing such as getting your bank loan approved. Most of the credit cards have interest rates as high as 10-20%, hence they are not considered a good source of loan term capital. Many entrepreneurs in the past have used credit cards as a source of money for their businesses when they had no other option. Even Google, the search giant, was funded by credit cards by its founders in the mid 1990s.

Incubator Funding -

You can even get your startup incubated in incubators in India such as Microsoft Ventures (Bangalore), Startup Village (Kerala), IAN Incubator (Delhi), CIIE, IIM-Ahmedabad or global incubators like 500Startups, TechStars or Y-Combinator. These incubators offer more than just money to the startups. They even provide the startup with the much needed guidance and mentorship along with the money. The startups get to be a part of a huge network of successful entrepreneurs that helps them in getting in touch with potential customers and partners. At the end of the program, the startups are provided with an opportunity to present their ideas in front of venture capitalists and angel investors.