Credit Guarantee Scheme for Startups (CGSS)
Department for Promotion of Industry and Internal Trade (DPIIT)
Expanded scheme notified 9 May 2025: guarantee cover up to ₹20 crore per borrower (85% of default for loans up to ₹10 crore, 75% above); annual guarantee fee 2% (1% for startups in the 27 Make in India champion sectors). Lenders: scheduled commercial banks, AIFIs, NBFCs, SEBI-registered AIFs.
What changed: Details added (cover %, fees)
Sources (1)
The Credit Guarantee Scheme for Startups (CGSS) helps startups access loans by assuring lenders that the government will cover part of the risk, making it easier for young businesses to get funding without collateral.
Objectives
Credit Guarantee Scheme for Startups (CGSS) aims at providing credit guarantee up to a specified limit against loans extended by Member Institutions (MIs) to finance eligible borrowers viz. entities recognised as ‘startups’ by DPIIT. CGSS is operated by the National Credit Guarantee Trustee Company (NCGTC) Limited.
Who can apply?
- Eligible (i) Scheduled Commercial Banks and Financial Institutions; (ii) RBI registered Non-Banking Finance Companies (NBFCs) and (iii) Securities and Exchange Board of India (SEBI) registered Alternative Investment Funds (AIFs) can become member institutions (MIs) subject to requirements.
- Eligible borrowers are DPIIT recognised startups.
What do you get?
- Maximum guarantee of ₹20 crore or actual outstanding credit amount, whichever is less. For both transaction-based and umbrella-based cover.
- Cover is 85% of the amount in default for loans up to ₹10 crore and 75% above ₹10 crore.
- Annual guarantee fee 2% (reduced to 1% for startups in the 27 Make in India champion sectors).
How to apply
Visit the website for details: https://www.ncgtc.in/en/product-details/CGSS/Credit-Guarantee%20Scheme%20for%20Start-ups%20(CGSS) For application through the Jan Samarth portal: https://www.jansamarth.in/business-loan-startup-scheme.