Objective

To provide financial assistance and support to Startups recognized by DPIIT, in order:

• to foster innovation and entrepreneurship for a vibrant Startup ecosystem in the country and
• to create employment opportunities, and to achieve an inclusive socio-economic growth and wealth creation.

Eligibility Criteria

1. For Startup Entity working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation.
2. Constitution: Private Limited Company, Registered Partnership, Limited Liability Partnership, or as acceptable for classification as “Start-up” under Start-up India Scheme of GoI, or any other notifications issued in this regard from time to time.
3. Registration: Should be registered with/ recognized by DPIIT, Government of India, or any other Government Department
4. Banking arrangement: The Unit to avail loan under sole banking arrangement only.
5. Startup not in default to any lending/investing institution and not classified as Non-Performing Asset as per RBI guidelines.
6. An entity formed by splitting up or reconstruction of an existing business shall not be considered as a “Startup”.
7. No Corporate loan is to be considered for Startups.

Purpose

To provide financial assistance to Start-ups for their various business requirements as follows:

1. Purchase of Raw materials, machineries, equipment.
2. Licenses and Certifications.
3. Team hiring, recruitment of staff/training.
4. Legal & consulting services
5. Marketing and sales
6. Purchase/leasing of office spaces and/administrative expenses.
7. Any other specific need of Startup (not covered above), as deemed fit by bank.

Nature of Facility

• Working capital [ Fund Based (FB) and Non-Fund Based (NFB)]
• Term Loan

Loan amount

Minimum: Above Rs.25 lakh

Maximum: Upto Rs.20 Crore

Loan tenure

Up to 10 years

Margin

25% (Working Capital & Term Loan)

Rate of Interest

As per the bank’s extant guidelines

Security

Primary Security:

• Hypothecation of stocks and book debts/ Hypothecation of assets purchased out/created out of Bank loan.
• Equitable Mortgage of property purchased out loan, if available.

Collateral Security:

• For accounts covered under CGTMSE/CGSS Scheme- NIL
• For non CGTMSE/CGSS covered cases: Collateral norms will be applicable as per bank’s extant Loan Policy.