Eligibility

• Start-up recognized by DPIIT as per Gazette Notifications issued from time to time, and
• Start-ups that have reached stage of stable revenue stream, as assessed from audited monthly statements over a 12-month period, amenable to debt financing, and
• Start-up not in default to any lending/investing institution and not classified as Non-Performing Asset as per RBI guidelines, and
• The constitution of Unit should be as acceptable for classification as “Start-up” under start-up India Scheme of GOI.
• Age of the unit should be less than 10 years from the date of incorporation.
• Turn over should not be more than Rs.100 crore in any of financial year.

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.

Loan Amount

• Minimum above Rs. 10.00 lakhs
• Maximum Rs. 50.00 Crores

Margin

• Term Loan-20% of the Project Cost

• Cash Credit: 25% on paid stocks and 40 % on Book Debts up to 180 days.

Rate of Interest

• As per circular in force based on Internal/external rating of the account.

Collateral Security

• Should not be insisted for loan up to Rs.10.00 core and to be covered under CGTMSE/CGSS as case may be.
• For Loan above Rs.10.00 Crore hybrid model to be followed and minimum 25% tangible collateral to be obtained for uncovered amount.

Repayment Period

• Term loan repayment: Maximum Door-to-Door repayment shall be 10 years including moratorium period not exceeding 36 months. Repayment can be in monthly / quarterly/Half yearly/annual instalments/ballooning instalments based on the projected cash flow of the unit. Interest shall be recovered separately as and when debited.
• Working Capital (Cash Credit): 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.)
• Non-Fund Based (LG/LC): On due date or on demand as case may be.

Processing Fee

• NIL

Other Conditions

• Internal Rating of the account should be investment grade i.e. rating should be IOB6 and above.
• CIC score of 700+ for all the partners/ Directors/ Proprietor.