Disclaimer…before you read ahead!
The information contained herein is of a general nature and for information purposes only, with the intent of raising awareness around various resources, schemes etc. available for women entrepreneurs in India. It is not intended to address the circumstances of any particular individual or entity. It does not purport to be all-inclusive or necessarily contain all the information that may be relevant for the reader, and may be subject to updating, revision or amendment. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to remain accurate in the future. The reader, therefore, is required to exercise their discretion; and not act on such information without appropriate professional advice after a thorough examination of the particular situation.
Furthermore, we are not a lender and are not authorized by the Reserve Bank of India to act as one. By disseminating the information contained herein, we are not soliciting any borrower or customers for the company or organization mentioned herein nor do we intend to syndicate any capital for the reader of this article.
About this scheme..
Canara Start Up Scheme, launched in 2023, is a loan offering by Canara Bank to provide financial assistance to Start Ups across India.
This Scheme also offers interest rate concessions for women entrepreneurs.
How is it being implemented?
Under this Scheme, financial assistance in the form of loans is given exclusively to,
What’s on offer?
I. Product
- Term loan, Fund based & non-fund based working capital facility
- Facility will be extended under sole banking arrangement only
- Ticket Size: ₹10 Lakhs to ₹10 Crores
II. Purpose:
- Prototype Creation, Product or Website or App Development
- Purchase of Raw Materials or Machineries or Equipment
- Licenses and Certifications
- Team Hiring or Recruitment of Staffs
- Legal & Consulting Services
- Marketing and Sales
- Purchase or Leasing of Office Spaces and / or
- Administrative Expenses
III. Borrower Type:
- Individuals, Sole Proprietorship, Partnership, Limited Liability Partnership (LLP), Private Limited Company, Public Limited Company
- For more information around this, please contact Canara Bank via means mentioned below
IV. Security or Collateral or Guarantee or Insurance
- Security: Primary charge on assets created out of Bank’s credit facility
- Term loan: Hypothecation or mortgage of assets financed by the Bank
- Working capital facility: Hypothecation of Stocks & Receivables
- Charge on Intellectual Property Rights, if financed by the Bank
- Right or Lien on all Products, Patents, Copyrights and results created out of Bank Finance in consultation with Recovery & Legal Section or reputed panel Advocates
- Collateral:
- May be required in the form of properties (land or land & building) and/or approved financial securities
- Uncovered portion (i.e. where collateral comfort is less than 100%) to be covered under Credit Guarantee Scheme for Startups (CGSS) or Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) cover under Hybrid model
- For more information around this, please contact Canara Bank via means mentioned below
- Guarantee: Nil
- Insurance: For more information around this, please contact Canara Bank via means mentioned below
V. Interest Rate
- Term loan & Fund based working capital facility
- Calculated as Repo Linked Lending Rate (RLLR) + Credit Risk Premium (CRP) that may range between 1.05% to 6.00% + Liquidity Premium of 0.40% or 0.80% – Concession of 0.50% Women Entrepreneur Micro & Small Enterprises – Concession of 0.25% on CGTMSE covered accounts
- May range between 9.80% to 15.55% per annum
- Non-fund based working capital facility: For more information around this, please contact Canara Bank via means mentioned below
VI. Processing Fee
- Term loan: 1.00% – 1.50%
- Fund based & non-fund based working capital facility: 0.25% to 0.40% per Lakh or part thereof
VII. Margin Money Requirement
- Term loan: 20%
- Fund based working capital facility: 20%, against Stock & Book Debts
- Non fund based working capital facility: 15%
VIII. Tenure, Repayments & Pre-Closures
- Tenure
- Term loan: upto 10 years including moratorium period of 36months
- Working capital facility: One year & renewed on annual basis
- Repayments: EMIs. For more information around this, please contact Canara Bank via means mentioned below
- Pre-payment & Foreclosure Charges: For more information around this, please contact Canara Bank via means mentioned below
IX. Turnaround Time
- 30 – 45 days
- Time limit starts from the date of receipt of completed loan application
Interested? Read ahead to check your eligibility….
I. Are you recognised as Start-up by DPIIT, Ministry of Commerce and Industry, Government of India?
II. Is your Start-up classified as an MSME having a valid Udyam Registration Certificate?
III. Does your Start-up have a sustainable and viable business model?
IV. Does your Start-up have the support of recognised Incubator or Accelerator or Investors available as per the Start-up India Portal?
V. Has the equity portion of your Start-up been fully tied-up?
VI. Has your Start-up reached the stage of stable revenue stream?
VII. The Start-up including its Promoters or Directors has not been in default to any lending or investing institution, and has not classified as Non-Performing Asset as per RBI guidelines?
If your answers to the questions above are an emphatic YES, you are all set to avail loan under Canara Start-Up Scheme!
So…how big is this scheme and what has been done so far?
I.  This information does not seem to be available in the public domain
So, now, how should you go about it?
I. For submitting application
- Please contact your nearest Canara Bank SME Specialized Branch, the details of which you can scroll & find here
OR
- Visit one of the 9,623 Canara Bank branches nearest to you
Financing under this Scheme shall be done only through the designated branches of the identified Circles in Mumbai, Pune, Bangalore, Delhi, Ahmedabad, Chennai and Hyderabad, details of which you can find here
II. For information on application form and documentation requirements:
OR
- Look under Documents Required Tab here
III. For any queries, please contact Canara via
- Toll Free Number: 1800 1030 24X7
OR
- Tolled Number: 080 22250159 (10 AM to 6 PM)
OR
- E-mail: hosbu@canarabank.com
OR
- Visit your nearest Canara Bank SME Specialized Branch, the details of which you can scroll & find here
OR
- Contact designated Start Up Cell branches of the identified Circles in Mumbai, Pune, Bangalore, Delhi, Ahmedabad, Chennai and Hyderabad, details of which you can find here
OR
- Contact your nearest Canara Bank MSME Sulabh branch here
OR
- Visit one of the 9,623 Canara Bank branches nearest to you
Go on then…and do spread the word!
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