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 updation, 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…
Loan for Startups (START) is a digital credit facilitation initiative for Startups launched in 2022 by JanSamarth, a National Portal for Credit Linked Government Schemes as a part of initiative by Government of India to link 14 Credit Linked Government Schemes on a single platform.
How is it being implemented?
Under this Scheme, loans are facilitated for
From any one of the 12 Public Sector Banks of your choice registered on JanSamarth Platform.
What’s on offer?
I. Product
- Term Loan, Cash Credit, Working Capital Facilities (Fund Based & Non-Fund Based), Off-Balance Sheet Limits (for forex hedging & other working capital purposes)
- Ticket Size: uptp ₹20 Crores
II. Purpose:
- Acquisition of or investment in fixed assets
- Working capital requirements
- More details under Point 16 of FAQs – What is the End Use under this Scheme? – here
III. Borrower Type:
- Registered Partnership Firm, Limited Liability Partnership (LLP), Private Limited Company
IV. Security or Collateral or Guarantee or Insurance
- Primary Security: There may be primary charge on assets financed under this Scheme
- Collateral Security
- Nil. Covered under transaction-based guarantee cover of Credit Guarantee Scheme for Startups (CGSS) issued by National Credit Guarantee Trustee Company (NCGTC). More details under Point 8 of FAQs – What is the extent of guarantee cover under CGSS? – here
- However, there may be scenarios when Collateral Security may be required. More details under Point 10 & 11 of FAQs here
- Guarantee: Nil
- Insurance: This will be as per Lender Bank’s policy. For more information around this, please contact JanSamarth via means mentioned below
V. Interest Rate
- This will be as per Lender Bank’s policy. For more information around this, please contact JanSamarth via means mentioned below
- May range between 9.5% – 18.0%
- There may be concessional rates offered for women entrepreneurs. Please do check the same with JanSamarth and/or Lender Bank
VI. Processing Fee
- This will be as per Lender Bank’s policy. For more information around this, please contact JanSamarth via means mentioned below
- May range from Nil to 1.5% for Term Loan
- May range from Nil to 0.4% for Working Capital Facilities
- There may be concessional rates offered for women entrepreneurs. Please do check the same with JanSamarth and/or Lender Bank
VII. Margin Money Requirement
- This will be as per Lender Bank’s policy. For more information around this, please contact JanSamarth via means mentioned below
- Minimum 25% for Term Loan & Working Capital Facilities
VIII. Tenure, Repayments & Pre-Closures
- Tenure
- Term Loan: 3 to 7 years which may be extended as per Lender Bank’s discretion based on borrower’s repayment capacity
- Fund Based Working Capital: annual renewal
- Repayments
- Term Loan: EMIs
- Pre-payment & Foreclosure Charges: Nil pre-payment penalty charges. For more information around this, please contact JanSamarth via means mentioned below
IX. Turnaround Time
- Upto 7 days
- In case you have not heard from your chosen Lender Bank by then, you will have the option to submit the application form to another Lender Bank from the list
Interested? Read ahead to check your eligibility….
I. Are you a DPIIT recognised Startup?
II. Your Startup is not formed by splitting up or reconstruction of some other entity OR is an HUF OR Startup with NPA status or in default?
III. It has been less than 10 years since you got incorporated?
IV. Has your business started acquiring customers & generating revenue?
V. Is your business scalable with a potential for high employment generation or wealth creation?
OR
Is your business focused on innovation, development or improvement of products, processes or services?
If your answers to the questions above are an emphatic YES, you are all set to avail Loan for Startups (START) from JanSamarth!
You can also check for your Eligibility under this Scheme here.
So…how big is this scheme and what has been done so far?
I. Details around loans facilitated by JanSamarth under this Scheme does not seem to be available in public domain
So, now, how should you go about it?
I. For submitting application:
II. For indicative list of documentation required, scroll down here to get to Additional Information
III. For any queries, please contact JanSamarth via:
- Phone: +91 7969076111
OR
- E-mail: customer.support@jansamarth.in
Go on then…and do spread the word!
Best
Sources:
