Star Start Up Scheme

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..

Star Start Up Scheme  is a loan offering by Bank of India (BOI) with concessions in interest rates, to provide financial assistance to Start Ups across India for innovation, development or improvement of products or processes or services, or with high potential for employment generation & wealth creation.

How is it being implemented?

Under this Scheme, financial assistance in the form of loans is given exclusively to,

• Start-ups recognised by Department for Promotion of Industry and Internal Trade (DPIIT)

What’s on offer?

I. Product

• Term loan, Fund based (Cash Credit, Overdraft) & non-fund based (Letter of Credit, Bank Guarantee) working capital facility
• Ticket Size: Above ₹10 Lakhs

II. Purpose:

• Acquisiton of or investment in fixed assets
• Working capital requirements

III. Borrower Type:

• Partnership, Limited Liability Partnership (LLP), Private Limited Company
• For more information around this, please contact BOI via means mentioned below

IV. Security or Collateral or Guarantee or Insurance

• Security: Primary charge on assets created out of Bank’s finance
• Collateral:
  • Facility upto ₹10 Crores may be covered under Credit Guarantee Scheme for Startups (CGSS), the fee of which will be borne by the borrower
  • For the balance, collateral may be sought by BOI
  • Minimum Collateral Coverage Ratio of 0.60 required
• Guarantee: Personal Guarantee of Promoters, Directors, Partners of the firm or major shareholders or major guarantors can be obtained

V. Interest Rate

• Term loan & Fund based working capital facility
  • Calculated as Repo Based Lending Rate (RBLR) + Spread (comprising of Credit Risk Premium (CRP) + Business Strategy Premium) – 1% concession applicable under this Scheme subject to overall interest rate not going below RBLR
  • May range from 9.35% and upwards. For more information around this, please contact BOI via means mentioned below
• Non-fund based working capital facility: For more information around this, please contact BOI via means mentioned below

VI. Processing Fee

• Nil

VII. Margin Money Requirement

• Term loan: 25%
• Fund based working capital facility: Stock 10%, Receivables 25%
• Non-fund working capital facility: 15%
• Any Seed Capital or Venture Capital invested by Venture Capitalist or Angel Funds will be treated as margin or equity

VIII. Tenure, Repayments & Pre-Closures

• Tenure
  • Term loan: upto 120 months including moratorium period of maximum 24 months
  • Working capital facility: For more information around this, please contact BOI via means mentioned below
• Repayments
  • Term loan: EMI or non EMI
  • Working capital facility: on demand
• Pre-payment & Foreclosure Charges: For more information around this, please contact BOI via means mentioned below

IX. Turnaround Time

• 14 – 30 business days
• Time limit starts from the date of receipt of completed loan application
• For more information, check under BOI’s MSME Policy by clicking here

Interested? Read ahead to check your eligibility….

I. Are you recognised as Start-up by DPIIT, Ministry of Commerce and Industry, Government of India?

If your answers to the questions above are an emphatic YES, you are all set to avail loan under Star Start Up Scheme!

Note: There may be additional eligibility criteria applicable, details of which can be gathered by contacting BOI via means mentioned below

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 apply under MSME Loan on Bank’s website here or here

OR

• Please contact BOI’s designated Start Up branches, the details of which you can find under Start Up Branches Tab here

OR

• Visit one of the 5,155 BOI branches nearest to you by scrolling here

II.  For information on application form and documentation requirements, check here or contact BOI via means mentioned below

III.  For any queries, please contact BOI via

• Toll Free Number: 1800 103 1906 OR 1800 220 229

OR

• Tolled Number: 022 40919191 available 24X7

OR

• E-mail: boi@bankofindia.co.in

OR

• Contact BOI’s designated Start Up branches, the details of which you can find under Start Up Branches Tab here

OR

• Visit one of the 5,155 BOI branches nearest to you by scrolling here

Go on then…and do spread the word!

Sources:                    

1. About Star Start Up Scheme
2. BOI’s Annual Report 2023-24
3. BOI’s Latest Investor Presentation