Start-Up

Definition of Start-Up

An entity shall be considered as a Start-Up

• Up to a period of ten years from the date of incorporation/registration, if it is incorporated as a private limited company (as defined in the Companies Act, 2013) or registered as a partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India.
• Turnover of the entity for any of the financial years since incorporation/ registration has not exceeded ₹100 Crore.
• Entity is working towards 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.
• Provided that an entity formed by splitting up or reconstruction of an existing business shall not be considered a “Start-Up”.
• An entity shall cease to be a Start-Up on completion of 10 (Ten) years from the date of its incorporation/registration or if its turnover for any previous year exceeds ₹100 Crore.
• The above definition of Start-Up is subject to change as per directions of Government of India.

Objective/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 Scheme launched by Government of India and as amended from time to time.

Eligibility

• The Start-Up should be registered as MSME having valid Udyam Registration Certificate.
• The Start-Up must be registered with by DPIIT and certified as Start-Up as per Start-Up India Scheme launched by Government of India.

Scheme Features

• Constitution: Constitution of Start-Up should be Private Limited Company, Registered Partnership Firm and Limited Liability Partnership Firm.
• Facilities Available: Term Loan and/or Working Capital (Fund Based and
  Non-Fund Based).
• Quantum of Loan: Up to ₹20 Crore.
• Pricing: Attractive Interest rates based on credit history of the Borrower/ Internal Rating.
  Rate of Interest starts from: UCO Float Rate + 1.10% = 8.30% + 1.10% = 9.40%.
• Borrower's Margin: Term Loan and/or Working Capital: Minimum 25%.
• Repayment Period: Up to 120 months (Maximum) including moratorium period.

Guarantee Coverage Fee (CGSS)

• General: 2% per annum + applicable GST of the Sanctioned/disbursed/ outstanding amount.
• Units located in North-East region as well as units established by Women entrepreneurs: 1.5 % per annum + applicable GST of the Sanctioned/ disbursed/outstanding amount.
• Unit from the 27 Champion Sectors: 1 % per annum + applicable GST of the Sanctioned/disbursed/outstanding amount.