UCO START-UP SCHEME
1. 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 launched by Government of India and as amended from time to time.
2. Eligibility
- The Startup should be registered as MSME having valid Udyam Registration Certificate.
- The Startup must be registered with/recognized by DPIIT and certified as Startup as per Startup India Scheme launched by Government of India.
- An entity shall be considered as a Startup Up to a period of ten years from the date of incorporation/registration.
- Turnover of the entity for any of the financial years since incorporation/registration not to exceed ₹100 Crore.
- An entity shall cease to be a Startup on completion of 10 (Ten) years from its incorporation/registration or if its turnover for any previous year exceeds ₹100 Crore.
3. Constitution
Registered Partnership Firm, Limited Liability Partnership, Private Limited Company.
4. Nature of Facility
- Term Loan / Cash Credit
- Letter of Credit / Bank Guarantee
5. Loan Quantum
Minimum: Above ₹20 Lacs
Maximum: ₹2000 Lacs
6. Credit Facility and Assessment
| Credit Facility | Assessment |
|---|---|
| Cash Credit | 25% of Annual Projected Turnover (30%, if transacting digitally). |
| Term Loan (TL) | Maximum 75% of cost of asset to be purchased/created out of Bank finance/Project cost. |
| Bank Guarantee (BG) | Can be availed within the overall Maximum cap under the scheme. Assessment to be done as per extant guidelines. |
| Letter of Credit (LC) | Can be availed within the overall Maximum cap under the scheme. Assessment to be done as per extant guidelines. |
7. Repayment Period
- Cash Credit: 12 Months
- Term Loan: Maximum 120 Months including moratorium period of 36 months (Maximum)
8. Margin
- Cash Credit and Term Loan: Minimum 25%
- Letter of Credit/Bank Guarantee: Minimum Cash Margin 15% (ZLCC can allow relaxation up to 5%)
9. Security
PRIMARY
- Term Loan: Assets created out of Bank finance shall be charged in favour of Bank by way of hypothecation/mortgage, etc.
- Working Capital: Hypothecation of Stocks and Receivables (Receivables not exceeding 120 days).
CREDIT GUARANTEE
The entire credit facility to be covered under Credit Guarantee Scheme for Startups (CGSS) of National Credit Guarantee Trustee Company Limited (NCGTC).
- Loan Sanctioned under this scheme will be covered using Transaction based Guarantee Cover model of CGSS.
- Transaction based Guarantee Cover means guarantee cover obtained by the lending/investing institution on single borrower basis.
- Maximum guarantee cover per borrower shall not exceed ₹20 Crores.
- Credit facility being covered under CGSS should not have been covered under any other guarantee scheme.
10. Interest Rate
Attractive Rate of Interest (RoI) starting from 9.15% to 11.00% linked to Consumer CIBIL Score/Commercial CIBIL MSME Rank (CMR) of the Borrower which is interlinked with Internal Credit Rating.
11. Other Features
- Takeover not allowed.
- Adhoc facility not allowed.
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