Credit Guarantee Scheme for Startups (CGSS) – Credit Guarantee Cover up to ₹20 Crore
Department for Promotion of Industry and Internal Trade (DPIIT)
Government-backed credit guarantee scheme supporting eligible debt funding of up to ₹20 Crore per borrower for DPIIT-recognised startups through eligible Member Institutions, including Scheduled Commercial Banks, Financial Institutions, qualifying NBFCs and SEBI-registered AIFs.
Who Can Apply?
Verified criteria and borrower eligibility guidelines set by the Government of India.
DPIIT Recognition
The entity must be a startup recognised by DPIIT as per applicable Government notifications.
Default & NPA Status
The startup must not be in default to any lending or investing institution and must not be classified as a Non-Performing Asset under RBI guidelines.
Member Institution Certification
The startup's eligibility must be certified by the eligible Member Institution for the purpose of CGSS guarantee cover.
Key Features
Core benefits, guarantees, and subsidy structures under this flagship program.
Transaction-Based Guarantee
Guarantee cover is 85% of the amount in default for loan amounts up to ₹10 Crore and 75% for loan amounts exceeding ₹10 Crore, subject to a maximum guarantee cover of ₹20 Crore per borrower.
Umbrella Guarantee for AIFs
For eligible SEBI-registered Alternative Investment Funds, guarantee cover is based on actual losses or up to 5% of pooled investment in startups, whichever is lower, subject to scheme limits.
Multiple Debt Instruments
Eligible facilities may include venture debt, working capital, subordinated or mezzanine debt, debentures, optionally convertible debt and other eligible fund-based or non-fund-based credit facilities.
Scheme Benefits
Application Process
DPIIT Recognition & Eligibility
Confirm valid DPIIT startup recognition and ensure compliance with CGSS borrower eligibility conditions.
Apply Through Member Institution
Approach an eligible Member Institution or apply through the Jan Samarth Portal for the required credit facility.
Credit Assessment & Sanction
The Member Institution evaluates the commercial viability, repayment capacity and eligibility of the startup before sanctioning the credit facility.
NCGTC Guarantee Cover
After sanction, the Member Institution applies to NCGTC for guarantee cover under CGSS, subject to fulfilment of scheme conditions.
Documents Required
Keep the following paperwork ready for instant verification and fast processing.
Frequently Asked Questions
Explore Startup Debt Support up to ₹20 Cr under CGSS
Our team assists with eligibility assessment, funding proposals, DPR preparation and coordination with eligible Member Institutions.