Union Start-up Scheme (Bank)


To stimulate sustainable economic growth and generate large scale employment, the government of India has launched a flagship initiative known as “Start-up India”. The initiative is to provide financial support for innovation, development, deployment or commercialization, of new products, processes or services driven by technology or intellectual property. The aim of the initiative is to foster entrepreneurship and promoting innovation by creating an ecosystem that is conducive for the growth of Start-ups.

Union Start-Up Scheme (pdf) pdf

About the Scheme

The features of the Union Start-up Scheme are:

  • Working Capital & Term Loan Finance to eligible start-ups up to Rs5.00 crore
  • Provision for financing soft cost in project cost
  • Flat margin of 20% for Working Capital & Term Loan finance
  • 1% concession over applicable ROI subject to minimum appropriate MCLR (Marginal Cost of funds of base Lending Rate)
  • NIL processing charges / inspection charges / documentation charges
  • No insistence on collateral security
  • Repayment period of TL up to 120 months including moratorium period up to 36 months

Note: As and when the entity cease to be a start-up i.e. within a maximum period of 5 years as per the Start-Up India Scheme, the concessions in the interest rates / service charges allowed under the scheme will be reviewed by the bank on a case to case basis.


  • The unit must be eligible and certified as “Start-up” by the concerned Government Authority as per Start-up India scheme launched by Government of India (GoI)
  • The constitution of the unit should be Private Limited Company, Registered Partnership and Limited Liability Partnership or as acceptable as classification as “Start-Up” under Start-Up India Scheme of the Government of India (GoI)
Quantum of Finance Minimum: Rs.0.10crore Maximum: Rs.5.00crore
Margin 20% (Working capital as well as Term Loan)
Interest Rate Concession over applicable rate of interest
Processing Charges NIL
Security Collateral:
Personal guarantee of promoter directors, partners of the firm/company having sufficient means and of all mortgagors of collateral security, if any.
Repayment Working Capital:12 Months
Term Loan:
Maximum Door to Door repayment shall be 10 years including moratorium period not exceeding 36 months. Repayment can be in monthly / quarterly installments. Interest shall be recovered separately.


Please proceed to the nearest branch for the application of this scheme.

All-India Toll Free number

1800 22 22 44

1800 208 2244

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