S.No

Parameter

Scheme Guidelines

1.

Purpose

To finance for 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 as per Start-up India Scheme.

2.

Eligibility

1. a. The unit must be recognized as Startup by DPIIT as per Gazette Notifications issued from time to time.

1. b. Startups that have reached stage of stable revenue stream, as assessed from audited monthly statements over a 12 month period, amenable to debt financing, and

1. c. Startup not in default to any lending/investing institution and not classified as Non-Performing Asset as per RBI guidelines.

1. d. The constitution of the Unit should be Private Limited Company, Registered Partnership and Limited Liability Partnership or as acceptable for classification as “Start-up” under Start-up India Scheme of GoI.

1. e. The Unit to avail loan under sole banking arrangement (excluding retail loans).

1. f. CIC Score of the promoters/directors should be 750+.

3.

Nature of Facility

Term Loan and / or Working capital (Fund Based and Non-Fund Based)

4.

Quantum

Minimum: Rs.0.10 Crore

Maximum: Rs.10.00 Crore

5.

Margin

20%  (Working capital as well as Term Loan)

6.

Security

Primary: All tangible assets created out of Bank’s finance shall be charged in favor of Bank by way of hypothecation / mortgage etc.

Collateral: May not be insisted up on. The eligible accounts are to be covered under Credit Guarantee Scheme for Start ups

Under Hybrid Model, collateral can be accepted.

7.

Repayment

Working Capital: 12 months subject to renewal as per extant guidelines. (The Working capital limit may be kept in abeyance pending completion of project or earlier as the case may be.)

Term Loan: Maximum Door to Door repayment shall be 10 years including moratorium period not exceeding 36 months. Repayment can be in monthly / quarterly installments. Interest shall be recovered separately.