“IND Start Up Scheme”

Objective & scope

(i)           To foster innovation and entrepreneurship for a vibrant Startup ecosystem in the country and

(ii)          To create employment opportunities, and to achieve an inclusive socio-economic growth and wealth creation.

The scope of the scheme will be operational Pan-India.

a)    Prototype creation, Product/App/Website development

b)    Purchase of Raw materials, machineries, equipment

c)    Licenses and Certifications

d)    Team hiring , recruitment of staff/training

e)    Legal & consulting services

f)     Marketing and sales

g)    Purchase/leasing of office spaces and/administrative expenses

h)    Any other specific need of Startup (not covered above), as deemed fit by bank.

b)    Constitution: Private Limited Company, Registered Partnership, Limited Liability Partnership, or as acceptable for classification as “Start-up” under Start-up India Scheme of GoI, or any other notifications issued in this regard from time to time.

c)    GoI Norms: An entity shall be considered as a startup up to 10 years from the date of its incorporation, or if its turnover for any previous year has NOT exceeded Rs.100 crore, as per Government of India guidelines, issued from time to time”

d)    Registration: Should be registered with/ recognized by DPIIT, Government of India, or any other Government Department

e)    Purpose: To finance for innovation, development, improvement of products/ processes / services, or for scaling the business model with a high potential of employment generation or wealth creation as per Start-up India Scheme

f)     Banking arrangement: The Unit to avail loan under sole banking arrangement only.

g)    Promoter/s CIC Score:

a.    As per our bank Credit policy norms.

b.    ”In case of CIBIL score of -1,3-5 and insufficient history in any other CIC, report from 2 CIC to be pulled irrespective of loan amount and the same may be accepted by the sanctioning authority with proper justification”.

h)    Approvals: All the statutory approvals / NOCs from the respective bodies/statutory authorities etc required as per local regulations should be in place as per the product of the Startup / progress of the project/operational stage of the Unit set up by Startup.

i)     Funding: Financing will be considered only after Startup has moved beyond proof of concept and prototype testing stage. Revenue should have commenced i.e., the unit must have acquired customer(s)

Eligibility Criteria & Other Terms & Conditions

a)    Startup not in default to any lending/investing institution and not classified as Non-Performing Asset as per RBI guidelines.

b)    An entity formed by splitting up or reconstruction of an existing business shall not be considered as a “Startup”.

c)    No Corporate loan is to be considered for Startups.

d)    Minimum Entry barrier of “BBB” should be be considered.

·         Term Loan:  Minimum 25%.

Project Loans:

·         Maximum tenor of the term loan including moratorium should not exceed 84 months.

Ø  Hypothecation of stocks and book debts/ Hypothecation of assets purchased out/created out of Bank loan.

Ø  Equitable Mortgage of property purchased out loan, if available.

COLLATERAL SECURITY:

Ø  For accounts covered under CGSS Scheme- NIL

Ø  In respect of credit facilities where a portion of the same has been secured by way of partial collateral security, the remaining part comprising of the unsecured facility will be covered under the Guarantee Scheme. The guarantee will be limited to the outstanding limit less the value of collateral security accepted.

(The Credit Guarantee Scheme for Startups (CGSS) guidelines are to be adhered to by the borrower)

GUARANTEE:

Ø Personal guarantee of promoter directors, partners of the firm/company having sufficient means and of all mortgagors of collateral security, if any.

Further, personal guarantee of key promoters should be obtained invariably.

Ø Pledge of promoters’ shares (will be explored).

OTHERS

Ø  Charge on Intellectual Property rights (IPRs)

Ø  Charges to be registered with Registrar of Companies (RoC) wherever applicable, CERSAI charge to be registered in respect of movable / immovable securities.

** Additional concession of 0.50% for women beneficiaries.