Federal Bank, MindEscapes ink MoU with StartupTN to Provide collateral free low-cost loans, grants to Startups

Federal Bank, MindEscapes ink MoU with StartupTN to Provide collateral free low-cost loans, grants to Startups

A powerful collaboration has been forged between Tamil Nadu Startup and Innovation Mission (StartupTN), the Government of Tamil Nadu’s nodal agency for Startups and Innovation; Federal Bank, one of India's leading banks; and MindEscapes, India's premier thought-led innovation center, located in Nilgiris, Tamil Nadu; to provide collateral free low cost loans and grants to Startups in Tamil Nadu.

This strategic MoU between the three stakeholders will solve a serious problem in the ecosystem. Startups across sectors and geographies, despite being novel, find it challenging to obtain loans or raise investments to build a sustainable venture amid the funding winter. The partnership also helps the Startup founders preserve their equity for further fund raise.

Through this partnership, Startups will be identified by StartupTN. They will pitch through curated sessions run by MindEscapes® and assisted by their knowledge partners across the State to receive loans and grants through Federal Bank. This extends the Startups a variety of resources and support to aid in their growth and propel the prospects of Tamil Nadu emerging as a Startup destination across.

"By providing access to capital and other essential resources, we can assist Startups in taking their businesses to new heights and spur innovation and entrepreneurship in the State,” said Mr. Sivarajah Ramanathan, Mission Director and Chief Executive Officer of StartupTN. He expressed confidence that this collaboration with Federal Bank and MindEscapes® will benefit Startups in the State.

"Our partnership with StartupTN represents our commitment to delivering innovation as a service to Startups to help them scale up and seize the opportunity," Mr. Shyam Srinivasan, MD & CEO of Federal Bank, said. The partnership targets Startups across all sectors and will aid in the State's efforts to foster innovation, create jobs and drive the economic growth of Tamil Nadu.

"We are thrilled to be collaborating with StartupTN and Federal Bank to help Tamil Nadu Startups develop and present their ideas and increase their chances for success. To facilitate this vision we have strategic knowledge partnerships with powerhouses of intellects including KPMG," said Ms. Dipali Sikand, Founder of MindEscapes®.

The partnership offers various services including:

  • Collateral-free loans, lower-cost loans, and grants to eligible startups basis Federal Bank's lending policies.
  • Curated pitch sessions and workshops
  • Access to a network of industry experts and potential investors
  • Opportunities for startups to work on real-world projects and increase their ideas' visibility

This partnership targets startups across all sectors and will aid in the state's efforts to foster innovation, create jobs, and drive economic growth in Tamil Nadu.


Federal Bank (NSE: FEDERALBNK) is a leading Indian private sector bank with a network of around 1,351 banking outlets and 1,896 ATMs/Recyclers spread across the country. The Bank’s total business mix (deposits + advances) stood at ₹ 3.69 Lakh Crore as on 31st December, 2022. Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines, stood at 13.35% as on 31st December 2022. Federal Bank has its Representative Offices at Dubai and Abu Dhabi that serve as a nerve centre for Non-Resident Indian customers in the UAE. The Bank also has an IFSC Banking Unit (IBU) in Gujarat International Finance Tec-City (GIFT City). Federal Bank is transforming itself, keeping its principles intact, into an organization that offers services beyond par. It has a well-defined vision for the future as a guidepost to its progress. The Bank recently launched its "Innovation As a Service" initiative to drive innovation for businesses. The bank works with companies of all sizes and across all industries to help them create new products, improve operations, and enhance processes.

About StartupTN- StartupTN functioning under the Micro, Small and Medium Enterprises Department, Government of Tamil Nadu Government, is the State’s nodal agency for Startups and Innovation, fostering inclusive mass entrepreneurship and holistic development to make the State an innovation driven economy.

MindEscapes® is a revolutionary platform that offers immersive and supportive environments for ideation, innovation, collaboration, and growth. Our Ideation as a Service provides access to unparalleled knowledge assets, resources, and hospitality services, all focused on driving creativity and collaboration.