# AU Small business loans

> AU Small is on Recur Club's lender panel, writing cgss over draft cash credit, cgtmsme overdraft cash credit, cgtmsme term loan and 7 other products. Observed tickets run ₹5 cr to ₹5 cr, priced between 10.5% and 10.5%. Median turnaround from application to disbursal is about 82 days.

Source: https://www.recurclub.com/lenders/au-small
Last updated: 2026-09-29

## Products and indicative terms

Observed on live transactions. Not an offer or a quote.

| Product | Ticket | Rate | Tenure |
|---|---|---|---|
| Secured Term Loan | ₹5 cr | 10.5% | 12 mo |

Also offered, with no terms observed yet: Cgss Over Draft Cash Credit, Cgtmsme Overdraft Cash Credit, Cgtmsme Term Loan, Dropline Overdraft, Operating Lease, Overdraft / Cash Credit, Purchase Invoice Discounting, Sales Invoice Discounting, Working Capital Demand Loan.

## Eligibility

### Will not fund

- Bhcyahare - not interested
- Avoids very small/early-stage fintechs and high-APR lenders (80%-100% APR models) due to regulatory scrutiny concerns
- Will only do sole banking cases with 100% cash flow routing; won't take cases where other lenders are already on the books unless it's a takeover
- Negative networth companies are a no-go (per updated PEC)
- AU will not fund without a personal guarantee (personal guarantee); company was unwilling to give one
- Bhcyahare - not interested (×1 · latest )
- Don't want to take up this deal; has reservations about the business model (×1 · latest )
- Avoids very small/early-stage fintechs and high-APR lenders (80%-100% APR models) due to regulatory scrutiny concerns (×1 · latest )
- Will only do sole banking cases with 100% cash flow routing; won't take cases where other lenders are already on the books unless it's a takeover (×1 · latest )
- Negative networth companies are a no-go (per updated PEC) (×1 · latest )

### Prefers

- Can work under a hybrid model
- Now open to new sectors - textile, Deeptech, EV (selectively) - which were previously viewed negatively
- Primarily lends to BBB- to A+ rated entities, but can also do unrated
- Can come in very early if founder pedigree is good
- VC backing is preferred but not mandatory for startup lending
- …more in playbook
- Can work under a hybrid model
- Now open to new sectors - textile, Deeptech, EV (selectively) - which were previously viewed negatively
- Primarily lends to BBB- to A+ rated entities, but can also do unrated
- Can come in very early if founder pedigree is good
- VC backing is preferred but not mandatory for startup lending
- Prefers to become primary/exclusive banking partner; will need proportionate routing if other banks are present
- Requires cash collateral as DSRA of 25% FD
- Requires personal guarantee/CG of promoters in line with security offered to other lenders
- Requires at least 50% of payouts and collections routed through them
- They prefer being sole lenders only with control over all cash flows.
- Exceptionally will prefer not more than 2 lenders (incl AU) on books.
- Prefer co scale in mid range and not too small (i.e. <510crs)
- Other scheme parameters remain the same.

### Screening gates and observed behaviour

- Borrower: CIBIL ≥650 · age ≥2y (cgss over draft cash credit, cgss term loan, cgss working capital demand loan only) · pan-India · sector-agnostic (45 sectors — full list in data JSON) (varies by product) · Private Limited, Public, Limited Liability Partner, Sole proprietorship
- Financials: runway ≥9mo (domestic factoring, dropline overdraft, export financing, import factoring, secured term loan, vendor financing) · runway ≥6mo (bank guarantee, letter of credit, loan against property, loan against securities, machinery loan, overdraft / cash credit, vehicle financing) · runway ≥12mo (cgss over draft cash credit, cgss term loan, cgss working capital demand loan) · TOL/adjusted tangible net worth ≤5 (varies by product) · debt/EBITDA ≤4 (bank guarantee, domestic factoring, dropline overdraft, export financing, import factoring, letter of credit, loan against property, loan against securities, machinery loan, overdraft / cash credit, secured term loan, vehicle financing, vendor financing) · debt/EBITDA ≤3 (cgss over draft cash credit, cgss term loan, cgss working capital demand loan, cgtmsme overdraft cash credit, cgtmsme term loan, cgtmsme working capital demand loan, purchase invoice discounting, sales invoice discounting, working capital demand loan) · debt/networth ≤4 (bank guarantee, domestic factoring, dropline overdraft, export financing, import factoring, letter of credit, loan against property, loan against securities, machinery loan, overdraft / cash credit, secured term loan, vehicle financing, vendor financing) · debt/networth ≤3 (cgss over draft cash credit, cgss term loan, cgss working capital demand loan, cgtmsme overdraft cash credit, cgtmsme term loan, cgtmsme working capital demand loan, purchase invoice discounting, sales invoice discounting, working capital demand loan) · DSCR ≥1 (varies by product) · rev ≥₹10cr (cgss over draft cash credit, cgss term loan, cgss working capital demand loan only) · maximum annualrevenue: 100 (cgss over draft cash credit, cgss term loan, cgss working capital demand loan only)
- Deal: rate 8–16% (range across products — see matrix) · ticket ₹0–200cr (range across products — see matrix) · tenure 12–180mo (range across products — see matrix) · no PEP
- Security (observed): 1st/pari-passu charge on current assets (100%) · Personal Guarantee Of Promoters / Directors / Property Owner (71%)
- median ticket ₹10cr
- median rate 14%
- median turnaround 82d
- Security asked in : Personal Guarantee Of Promoters/Directors (×2), Escrow Of Cashflows (×2), 1st/pari-passu charge on current assets (×2), Fixed Deposit <5% (×2)
- Security asked in : 1st/pari-passu charge on current assets (×12), Personal Guarantee Of Promoters/Directors (×7), FD margin 15–20% (×7), FD margin 20–30% (×4)
- Security asked in 2026: 1st/pari-passu charge on current assets (×14), Personal Guarantee Of Promoters / Directors / Property Owner (×10), 1st charge on P&M (×6), FD margin 20–30% (×3)
- share → in-principle approval (initial interest): ≈29d
- in-principle approval → sanction (underwriting): ≈10d
- sanction → disburse (closing): ≈0d

## Common questions

### What does AU Small lend?

AU Small writes cgss over draft cash credit, cgtmsme overdraft cash credit, cgtmsme term loan, dropline overdraft, operating lease, overdraft / cash credit and 4 further products. Across those, observed facilities run ₹5 cr to ₹5 cr.

### What ticket size does AU Small offer?

Facilities observed on live transactions run from ₹5 cr to ₹5 cr. The band differs by product, so the figure that applies to you depends on which facility you are asking for.

### What rate does AU Small charge?

Rates observed on live transactions fall between 10.5% and 10.5% a year. Tenures run 12 to 12 months. These are observed figures, not a quote, and the rate you are offered depends on your file.

### How long does AU Small take to disburse?

About 82 days from application to disbursal at the median, where the file is complete. Missing financials, unresolved security or a pending no-objection from an existing lender are what usually stretch it.

### What are AU Small's eligibility criteria?

The first screen is the bureau: a borrower CIBIL of at least 650. Revenue, leverage and debt-service thresholds apply on top and vary by product. The full credit box for each product is set out on this page.

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Lender intelligence dossier - screening gates, per-product terms and sanction observations, derived from lender policy documents and observed transactions. Figures are observed from a sample and are not an offer, a commitment, or a statement of AU Small's current policy.