Finance to Start-ups (MSME UDAAN)

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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

8.50%* p.a.

w.e.f. 17.05.2023

*T&C Apply.

 

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