On Monday, Foreign bank HSBC India announced that it will provide $250 million in loans to start-ups in the country.

In a statement, the bank said it did not specify a timetable for the payment amount. The loan will be made available to technology-led, high-growth startups in the world’s third-largest startup ecosystem.

The loan will be administered by the lender’s commercial banking vertical at a time when local financial intermediaries are increasingly concerned about the debt needs of startups and a “funding winter” affecting equity financing in the sector.

Profits in India’s commercial banking vertical rose 42% to $265 million in 2021, compared with $187 million a year earlier.

Lending to SMEs tripled to $1 billion in 2021, compared with $300 million in 2018, the bank said.

The statement added that the loans will be aimed at growth-stage companies, and the bank has developed credit models and products to meet the specific requirements of various startups and new-age entities, from growth stages to unicorns.