FINANCE TO START-UPS (MSME UDAAN) - Business

Features

• Target Group :
  • Start-ups which are classified as MSME and registered with / recognised by DPIIT, Govt. of India.
  • Start-ups having sustainable business model & established Proof of Concept (a general approach that involves testing a certain assumption in order to obtain confirmation that the idea is feasible, viable and applicable in practice)
  The Start-up should have the support of recognized Incubator / Accelerator / Investors, available as per the Start-up India portal.
• Facilities Available :Term Loan, Working Capital (fund based/ non-fund based / CEL)
• Quantum of Loan:Maximum: Rs.50 Crores, categorised into two:
  1. i. Upto Rs.50 lakhs
  2. ii. >50 lakhs – 50 Crs
• Pricing : Attractive Interest rates based on rating of the Borrower/ External Rating or as per Scheme Specific Rating (if applicable) or as per extant guidelines of the Bank.
  EBR (Linked to Repo Rate and Currently EBR is Repo Rate + 2.65%) linked (for MSMEs) & 6 months MCLR linked (for Non-MSMEs)
• Borrower's Margin / Contribution :
  • Loans upto Rs.10 lakhs – NIL
  • Loans above Rs.10 lakhs
  • Term Loan: As per the Debt: Equity specified under the Product.
  • Working Capital: Min. 25% on Stocks & Receivables, if any.

• Repayment Period:

  • Door-to-Door repayment shall be 120 months (Maximum) including moratorium period.
  • Bullet repayment may be allowed.
• Processing Fee/ Upfront Fee :As per Bank's extant guidelines
• Other Charges :NA

• Special Feature :

  • Financing under the Product will be done only by select Branches (to be identified and authorised by the Circle).
  • The Start-up accounts which have been financed so far under Bank’s usual credit dispensation shall be migrated to the identified / designated Start-up Branches, so as to offer dedicated value added services and cater to the entire value chain / ecosystem.