Finance to Start-ups (MSME UDAAN)

Business Current AccountsSME LoansSME Collection Products
Show More
SME Fixed DepositsSME Government SchemesApply OnlineExternal Benchmark based Lending Rate(EBLR) for MSME LoansOnline Lead StatusContact Details of AGM SMEsList of SME Intensive Branches
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:

    • Attractive Interest rates based on internal credit rating of the Borrower.

    • 50 bps concession in interest rates to women beneficiary.

  • Repayment Period:

    • Term Loan: Upto 120 months (incl. moratorium upto 36 months) / Bullet repayment

    • Working Capital: Repayable on demand


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.
    b) Loans > Rs.50 lakhs – 50 Crores:
    • 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

8.40%* p.a.

w.e.f. 01.09.2023

*T&C Apply.

 

View All
SEE PRODUCTS APPLY NOW
Quick Links