CA Loan Bajaj Finserv
CA Final Online Classes
CA Classes

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

SIDBI's new COVID-19 Startup Assistance Scheme (CSAS)

Akansha Rathi 
on 06 May 2020

LinkedIn


Salient Features of the Scheme

  • Quick working capital in the next 45 to 90 days to startups.
  • Loan of upto Rs 2 crore with 36 months of tenure including the 12 months moratorium.
  • Interest rate of 10.5% per annum
SIDBI s new COVID-19 Startup Assistance Scheme (CSAS)

Eligibility Criteria

  • Government defined startups which have received funding through at least one of the Alternate Investment Fund registered with SEBI.
  • Startups with a minimum employee base of 50 employees
  • Startups having FY 2019 and FY 2020 minimum turnover between INR 10 crore to INR 60 crore and incorporated for less than 10 years
  • Positive unit economics are eligible to apply for the loan.
  • The founder should have invested some capital in the startup.
  • Demonstrated innovative measures for ensuring business continuity during COVID-19
  • Ensured employee safety and financial stability
 

Security

  • First Pari-Passu charge on current assets of the company
  • Keyman insurance to the extent of the amount disbursed to secure the facility 

Default terms

Default for more than 180 days, right to convert that defaulted installments along with its accrued interests, penal interests and all other costs and charges (either in full or in part) into equity capital of the company “at par”

 

Process to avail the loan

  • An application cum Credit Appraisal Memo (CAM) along with Self-Assessment Tool (SAT) on the SIDBI portal
  • Requirement to fill the CAM, SAT and submit the documents to a designated email within 30 days of launch   The Recommendation Committee will run a process
  • The proposed Internal Credit Committee (ICC) of SIDBI will hold a weekly meeting to approve loans to startups.
  • Approval or rejection will be communicated on the same day by email.
  • The Loan Agreements and related documentation will be completely digital.

Tags :



Category Professional Resource
Other Articles by -
Akansha Rathi 

Report Abuse

LinkedIn



Comments


update