Indian Bank

Before you apply

• Get DPIIT recognition first, since the scheme is open only to recognised startups.
• Make sure you have customers and revenue. The scheme funds startups past the prototype stage.

How applications work

• Start from the Apply For Loan option on the scheme page.
• The bank assesses each loan under its own credit policy.

Indian Bank is a public sector bank, incorporated in 1907. It lends to startups through the IND Start Up Scheme, a bank loan for startups recognised by DPIIT.

How the scheme works

The scheme gives financial help to startups for their business needs, such as prototype and product development, machinery and equipment, licences and certifications, hiring and training, legal and consulting services, marketing and sales, and office space. Loans fall under the Credit Guarantee Scheme for Startups (CGSS), which is why collateral is listed as nil for accounts covered under it.

Who can apply

A startup needs DPIIT recognition or recognition from another government department. The company is treated as a startup for 10 years from incorporation, and for 20 years if it is a deep tech startup. The startup must have moved past proof of concept and must already have customers. Startups that are in default to a lender, or whose account is classified as non-performing, are not eligible. A business formed by splitting up or rebuilding an existing business does not count as a startup.

Terms

The loan limit, interest rate and guarantee fee are not repeated here, so check them with the bank before you apply. Term loans can run for up to 84 months, including any moratorium. The bank applies its own credit policy when it assesses a loan.