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WEB_ACCESSIBILITY_CERTIFICATE

  • Canara

  • Start Up
Nature of Facility Working Capital (FB & NFB) and/or Term Loan
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.
Quantum of loan
  • Minimum: Above Rs.10 Lakhs
  • Maximum: Rs.20.00 Crores
Margin
  • Term Loan -20%
  • Fund Based Working capital – Against Stock & Book Debts: 20%
  • Non Fund Based – 15%
Repayment Period
  • Working Capital – One Year
  • 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: hosbu@canarabank.com
  • Term Loan – Maximum repayment term shall be 10 years including maximum moratorium period of 36 months. Interest to be repaid as and when due.
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.
Processing Charges Applicable as per the scheme guidelines.
Coverage Uncovered portion (i.e. where collateral comfort less than 100%) to be covered under CGSS / CGTMSE cover under Hybrid model.

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.

An entity shall be considered as a Start-up (as per DPIIT guidelines) on compliance of following:

  • 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
  • Turnover of the entity for any of the financial years since incorporation/ registration has not exceeded Rupees one hundred crore and
  • 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’.

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.

  • Customer Identification proof along with NF998 MSME application.
  • Address Proof of unit and promoters.
  • License/permissions.
  • Financial papers for the last 3 years with ITR and projections.
  • Details of Guarantor with proof of assets.
  • Stock Statement.

Rate of Interest is linked to the value of security/approved collaterals, Internal and External Risk Rating/Grade.

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Last updated on 22-01-2026 01:15 AM

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