Credit Boost Plan (Credit Guarantee Scheme for Startups)
Credit Boost Plan should be presented as the Credit Guarantee Scheme for Startups (CGSS). CGSS enables eligible member institutions such as banks, qualifying NBFCs and SEBI-registered AIFs to extend debt to DPIIT-recognised startups with government-backed guarantee cover, reducing lender risk and improving access to collateral-light startup credit.
About this Service
Credit Boost Plan should be presented as the Credit Guarantee Scheme for Startups (CGSS). CGSS enables eligible member institutions such as banks, qualifying NBFCs and SEBI-registered AIFs to extend debt to DPIIT-recognised startups with government-backed guarantee cover, reducing lender risk and improving access to collateral-light startup credit. Key support under this route includes Maximum debt eligible for guarantee cover up to INR 20 crore per borrower under the revised framework. Transaction-based cover: up to 85% of amount in default for loans up to INR 10 crore and 75% above INR 10 crore, within the scheme ceiling. Supports venture debt, working capital, subordinated/mezzanine debt, debentures and other eligible debt facilities. Typical applicant fit includes the following: DPIIT-recognised startup. Startup should not be in default to a lending/investing institution and should not be classified as NPA. Applicants should build the proposal around measurable milestones, a realistic budget, evidence of market or beneficiary need, and a clear implementation or growth plan. Where the route is an equity fund or lender product, due diligence, valuation/credit assessment and negotiated terms apply; where it is a grant or accelerator, selection remains competitive and milestone-based.
Key Benefits
- Maximum debt eligible for guarantee cover up to INR 20 crore per borrower under the revised framework.
- Transaction-based cover: up to 85% of amount in default for loans up to INR 10 crore and 75% above INR 10 crore, within the scheme ceiling.
- Supports venture debt, working capital, subordinated/mezzanine debt, debentures and other eligible debt facilities.
- Can improve access to collateral-free / lower-collateral startup borrowing.
- Available through eligible member institutions; guarantee is not issued directly to the startup.
Eligibility Criteria
- DPIIT-recognised startup.
- Startup should not be in default to a lending/investing institution and should not be classified as NPA.
- Member Institution must certify eligibility and sanction the debt facility.
- Borrower must satisfy normal lender appraisal and scheme guidelines.
Documents Required
- DPIIT recognition certificate.
- Incorporation and cap table.
- Founder KYC.
- Business plan, financial projections and debt requirement.
- Bank statements and financials.
- Member-lender specific credit and due-diligence documents.
Frequently Asked Questions
What is the timeline for Credit Boost Plan (Credit Guarantee Scheme for Startups)?
The standard timeline depends on government processing, typically ranging from a few days to a few weeks.
What documents are required?
Standard KYC documents (Aadhaar, PAN, Address Proof) and business entity documents are required.
What is Credit Boost Plan (Credit Guarantee Scheme for Startups)?
Credit Boost Plan should be presented as the Credit Guarantee Scheme for Startups (CGSS). CGSS enables eligible member institutions such as banks, qualifying NBFCs and SEBI-registered AIFs to extend debt to DPIIT-recognised startups with government-backed guarantee cover, reducing lender risk and improving access to collateral-light startup credit.
What funding or support is available under Credit Boost Plan (Credit Guarantee Scheme for Startups)?
Maximum debt eligible for guarantee cover up to INR 20 crore per borrower under the revised framework. Transaction-based cover: up to 85% of amount in default for loans up to INR 10 crore and 75% above INR 10 crore, within the scheme ceiling. Supports venture debt, working capital, subordinated/mezzanine debt, debentures and other eligible debt facilities.
Who can apply for Credit Boost Plan (Credit Guarantee Scheme for Startups)?
DPIIT-recognised startup. Startup should not be in default to a lending/investing institution and should not be classified as NPA. Member Institution must certify eligibility and sanction the debt facility.
How can Growthora help with the Credit Boost Plan (Credit Guarantee Scheme for Startups) application?
Growthora can help with eligibility review, document planning, pitch deck / DPR / proposal preparation, milestone and budget structuring, financial projections, application drafting and pre-submission review. Final approval, investment, grant or loan sanction remains with the relevant authority, lender, incubator or investor.
Conclusion
Credit Boost Plan (Credit Guarantee Scheme for Startups) can be useful for applicants whose stage, entity structure, sector and funding need align with the programme. Before applying, confirm the live guidelines, current application window and exact financing instrument. A strong application should combine eligibility proof, a clear problem-solution narrative, credible milestones, realistic financials and complete documentation. Growthora can support preparation and review, but approval, investment, loan sanction or grant selection is decided solely by the relevant authority, lender, incubator or investor.
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