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.
Eligibility
The Unit must be eligible and certified as “Start-up” by the concerned Government Authority as per Start-up India scheme launched by Government of India (GoI).
Facility
Term Loan and / or Working capital (Fund Based and Non-Fund Based)
Quantum of Finance
Minimum: Rs.0.10 crore
Maximum: Rs.5.00 crore
Margin
20% (Working capital as well as Term Loan)
Charges
Nil
Security
Primary: All tangible assets created out of Bank’s finance shall be charged in favor of Bank by way of hypothecation / mortgage etc.
Collateral: May not be insisted upon
Repayment
Working Capital: 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.)
Term Loan:Maximum Door to Door repayment shall be 10 years including moratorium period not exceeding 36 months. Repayment can be in monthly / quarterly instalments. Interest shall be recovered separately.
Assessment
Assessment is to be made as per the lending methods indicated in the Loan Policy.
Credits – Union Bank of India