FINANCE TO START-UPS (MSME UDAAN) - Business
Finance to Start-ups (MSME UDAAN)
Purpose: To provide financial assistance to DPIIT registered / recognised Start-ups for their various requirements like Prototype creation, product / website / app development, Team hiring, Legal and consulting services, Raw material and equipments, Licenses and certifications, Marketing and Sales, Purchase / Leasing of Office spaces and administrative expenses.
Features
- Target Group : MSME Start-ups registered with / recognized by Department for Promotion of Industry and Internal Trade (DPIIT), Govt. of India.
- Type of facility: : Term Loan, Working Capital
- Quantum of Loan: Maximum: Rs.50 Crores
- Borrower’s Margin / Contribution:
Loans upto Rs.10 lakhs: NIL
Loans above Rs.10 lakhs:- Term Loan: As per the Debt:Equity specified.
- Working Capital: Min. 25% on Stocks & Receivables, if any.
- Pricing:
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Attractive Interest rates based on internal credit rating of the Borrower.
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50 bps concession in interest rates to women beneficiary.
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Repayment Period:
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Term Loan: Upto 120 months (incl. moratorium upto 36 months) / Bullet repayment
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Working Capital: Repayable on demand
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Eligibility
- The Start-up should be registered as MSME having valid Udyam Registration Certificate.
- The Start-up should be registered with / recognized by DPIIT, Government of India, with the following characteristics:
- Constitution: Public or Private Limited Company, Registered Partnership, or a Limited Liability Partnership.
- Age: Up to 10 years from the date of incorporation/registration
- Turnover: Not to exceed Rs.100 crores in any of the Financial Years after incorporation / registration.
- Attributes: Working towards innovation, development or improvement of products/processes/services or if it is scalable business model with high potential of employment generation or wealth creation.
- Others: Should not have been formed by splitting or reconstructing an already existing business.
- The Start-up should have the support of recognized Incubator / Accelerator / Investors, available as per the Start-up India portal.
- The equity portion of Start-up shall be fully tied-up.
Terms & Conditions
- Primary Security:
- Hypothecation of Assets financed by the Bank.
- Hypothecation of Stocks & Receivables
- Charge on Intellectual Property Rights (if financed by Bank).
- Right /Lien on all Products/Patents/Copyrights and Results created out of Bank Finance, in consultation with empanelled reputed Law Firm / Law Dept. of the Bank.
- Collateral Security:
a) Loans upto Rs.50 lakhs:- To be covered under CGTMSE / CGSS
- If CGTMSE / CGSS coverage is not available, Min. 25% tangible collateral security to be obtained.
- Alternative Investment Fund (AIF) investment is compulsory
- To be covered under CGTMSE / CGSS
- If CGTMSE / CGSS coverage is not available, Min. 25% tangible collateral security to be obtained
- Guarantee: Personal Guarantee of all Promoters
- Processing charges: NIL
- Inspection fees / Commitment charges / Pre-payment charges: NIL
Last Updated On : Wednesday, 12-04-2023

Interest Rates
2.70% p.a.
less than Rs.10 Cr. w.e.f 15.10.22
3.00% p.a.
Rs.10 Cr. and above w.e.f 15.10.22
2.70% p.a.
Balance below Rs. 10 crs
3.00% p.a.
Balance Rs. 10 crores and above
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Criteria
- Features
- Eligibility
- Terms and Conditions

Interest Rates
2.70% p.a.
less than Rs.10 Cr. w.e.f 15.10.22
3.00% p.a.
Rs.10 Cr. and above w.e.f 15.10.22
2.70% p.a.
Balance below Rs. 10 crs
3.00% p.a.
Balance Rs. 10 crores and above