Canara

Canara Bank has implemented “CANARA START-UP” Scheme for financing MSME units (as defined under MSMED Act 2006 with further revision in definition of MSME effective from 01.07.2020, as per Gazette Notification dated 26.06.2020 with relevant modifications communicated subsequently), which are recognized as Start-ups by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Govt. of India.

An entity shall be considered Start Up (as per DPIIT guidelines) on compliance of the following:

• Period of existence and operations should not be exceeding 10 years from the Date of Incorporation, 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.
• Start-up should have reached the stage of stable revenue stream.

The Scheme is made available to the Start-ups on compliance of the following eligibility criteria:

• The unit should be Micro Small and Medium Enterprises(MSMEs) recognised as Start-up by DPIIT, Ministry of Commerce and Industry, Government of India.
• The Start-up shall have 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.
• 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.

Note: An entity formed by splitting up or reconstruction of an existing business shall not be considered a ‘Start Up’.

Start Ups can avail loan from the Bank under Start Up scheme for their various business requirements as follows:

• 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.

Bank is extending following type of loan products under Sole banking arrangement only:

Working Capital (FB & NFB) and/or Term Loan

Loan quantum permitted under the scheme is :

Minimum: - Above Rs. 10 lakhs Maximum: -Rs. 10 Crores with margins as per the scheme.

Working Capital Finance – One year

Term Loan – Maximum repayment period for term loan permitted is 10 years including maximum moratorium period of 36 months.

Yes. Loan to be Covered under guarantee covered by NCGTC i.e. Credit Guarantee Scheme for Start Ups (CGSS) or guarantee covered by CGTMSE as applicable.

"Primary security" in respect of a credit facility i.e. assets created out of the credit facility so extended. Collateral security wherever applicable as per the bank norms.

Yes. Such proposals being processed under the bank schemes suitable for MSMEs.

Yes, Canara Bank has designed and implemented ‘Canara Prarambh’ Current Account product to cater the needs of Start Ups.