Collateral Free Loan For Startup Companies
Collateral Free Loan is available for startup companies if they are fulfilling the below conditions;
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It should be a private limited company.
Should have SME /SSI registration
Should have been funded by angel /VC investor. (Investor need not be registered with SEBI.Even individual investor is also eligible)
There should be a share purchase agreement and share allotment proof is mandatory
Extent of financing of the project cost: 10% from promoters, 20% from investors (any angelfunds, VCs, individuals invested in the company) and remaining 70% will be given by way of loan
Types of loan - Term loan or working capital assistance will be provided
Term loan is for a maximum period of 7 years and maximum moratorium period of 3 years
Loan is covered under CGTMSE scheme (for that additional fee is payable) and hence there will be no collateral but promoters personal guarantee is required
Expenses eligible for assistance under this scheme : Product development expenses, Purchase of machinery, tools, computers etc, Promoters’ margin of working capital, Any other expenses relevant for business.
Testimonials:
