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    Canara Start Up061023

    Uploaded by

    Mahim Dangi
    This document outlines Canara MSME Start-up, a financial assistance program for Indian startups. The program provides working capital and term loans ranging from Rs. 10 lakhs to Rs. 10 crores to eligible micro, small and medium enterprises recognized as startups by the Department for Promotion of Industry and Internal Trade. Loans are provided for various business expenses and have repayment periods up to 10 years. Eligible startups must be registered under relevant acts, have a sustainable business model, and not be in default of any prior loans. Financing is provided through designated Canara Bank branches in major cities.

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    Canara Start Up061023

    Uploaded by

    Mahim Dangi
    31 views2 pages
    This document outlines Canara MSME Start-up, a financial assistance program for Indian startups. The program provides working capital and term loans ranging from Rs. 10 lakhs to Rs. 10 crores to eligible micro, small and medium enterprises recognized as startups by the Department for Promotion of Industry and Internal Trade. Loans are provided for various business expenses and have repayment periods up to 10 years. Eligible startups must be registered under relevant acts, have a sustainable business model, and not be in default of any prior loans. Financing is provided through designated Canara Bank branches in major cities.

    Original Description:

    Canara Bank Startup Scheme

    Original Title

    CANARA_START_UP061023

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    This document outlines Canara MSME Start-up, a financial assistance program for Indian startups. The program provides working capital and term loans ranging from Rs. 10 lakhs to Rs. 10 crores to eligible micro, small and medium enterprises recognized as startups by the Department for Promotion of Industry and Internal Trade. Loans are provided for various business expenses and have repayment periods up to 10 years. Eligible startups must be registered under relevant acts, have a sustainable business model, and not be in default of any prior loans. Financing is provided through designated Canara Bank branches in major cities.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    31 views2 pages

    Canara Start Up061023

    Uploaded by

    Mahim Dangi
    This document outlines Canara MSME Start-up, a financial assistance program for Indian startups. The program provides working capital and term loans ranging from Rs. 10 lakhs to Rs. 10 crores to eligible micro, small and medium enterprises recognized as startups by the Department for Promotion of Industry and Internal Trade. Loans are provided for various business expenses and have repayment periods up to 10 years. Eligible startups must be registered under relevant acts, have a sustainable business model, and not be in default of any prior loans. Financing is provided through designated Canara Bank branches in major cities.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    CANARA MSME START-UP

    Last Updated: 01.08.2023

    Purpose To provide Financial assistance to Start-ups for their various business


    requirements as below:
     Prototype Creation, Product/Website/App Development
     Purchase of Raw Materials / Machineries / Equipment
     Licenses and Certifications
     Team Hiring /Recruitment of Staffs
     Legal & Consulting Services
     Marketing and Sales
     Purchase / Leasing of Office spaces and / or administrative
    expenses.
    Target Group Micro Small and Medium Enterprises (MSMEs) recognised as Start-ups
    by DPIIT.
    Applicability An entity shall be considered as a Start-up (as per DPIIT guidelines)
    on compliance of following:
    i. 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 and
    ii. Turnover of the entity for any of the financial years since
    incorporation/ registration has not exceeded Rupees one hundred
    crore and
    iii. 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.
    Note: An entity formed by splitting up or reconstruction of an existing
    business shall not be considered a ‘Start-up’.
    Eligibility The Scheme shall be made available to the Start-ups on
    compliance of the following eligibility criteria:
     The unit should be recognised as Start-up by DPIIT, Ministry of
    Commerce and Industry, Government of India.
     The Start-up should be classified as MSME and having a valid
    Udyam Registration Certificate.
     Start-ups having sustainable and viable business model & also
    having the support of recognised Incubator/ Accelerator/
    Investors available as per the Start-up India Portal.
     The equity portion of Start-up shall be fully tied-up.
     Start-up should have reached the stage of stable revenue stream.
     Facility can be extended under sole banking arrangement only.
     Start-ups including Promoters / Directors should not be in default
    to any lending / investing institution and not classified as Non-
    Performing Asset as per RBI guidelines.
    Financing Branches Financing under the proposed scheme shall be done only through the
    designated branches of the identified Circles, Mumbai, Pune,
    Bangalore, Delhi, Ahmedabad, Chennai and Hyderabad.
    Type of Facility Working Capital (FB & NFB) and/or Term Loan
    Loan Quantum  Minimum: Above Rs.10 Lakhs
     Maximum: Rs.10.00 Crores
    Margin Term loan -20%
    Fund Based Working capital – Against Stock & Book Debts: 20%
    NFB – 15%
    Repayment  Working Capital – One Year
     Term Loan – Maximum repayment term shall be 10 years including
    maximum moratorium period of 36 months. Interest to be repaid
    as and when due.
    Interest Rate Applicable as per the scheme guidelines.
    Upfront fee / Processing Applicable as per the scheme guidelines.
    charges / Commission on
    NFB limits/ TEV/
    Security Primary Security:
    "Primary security" in respect of a credit facility shall mean the assets
    created out of the credit facility so extended.
     Term Loan: Hypothecation / Mortgage of Assets financed by the
    Bank.
     Working Capital: Hypothecation of Stocks & Receivables.
     Charge on Intellectual Property Rights (if financed by the Bank).
     Right/ Lien on all Products/ Patents/ Copyrights and Results
    created out of Bank Finance in consultation with Recovery & Legal
    Section/ reputed panel Advocates.
    "Primary security" has to be invariably encumbered to Bank loan.
    Collateral Security/Guarantee:
    "Collateral security" means the security provided in addition to the
    primary security and can be in the form of properties (land/ land and
    building) and/or approved financial securities.
    CGTMSE Coverage Uncovered portion (i.e. where collateral comfort less than 100%) to
    be covered under CGSS / CGTMSE cover under Hybrid model.
    Conditions apply: The Information provided above is only illustrative and not exhaustive
    Contact: For more details, please contact your nearest Canara bank Branch or email:
    [email protected]

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