Sarkari Yojana
Credit Guarantee Scheme for Startups
About Credit Guarantee Scheme for Startups
Notified by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India, the Credit Guarantee Scheme for Startups (CGSS) went live on 6th October 2022, with a revised notification issued on 8 May 2025 taking effect from that date – covering loan/debt facilities sanctioned to eligible startups on or after the notification. CGSS extends credit guarantees across a broad set of debt instruments – venture debt, working capital, subordinated/mezzanine debt, debentures, and other fund- and non-fund-based facilities that turn into debt – given by eligible Member Institutions to DPIIT-recognised startups. At its core, it offers guarantee cover up to set limits on these instruments, enabling collateral-free debt funding for eligible startups and opening up institutional finance to them. Notable features include both transaction-based and umbrella-based guarantee structures, a maximum guarantee cover of ₹20 crore per borrower, and tiered Annual Guarantee Fee/Annual Commitment Charge slabs, with lower rates for North-East units, women entrepreneurs, and the 27 identified “Champion Sectors.” The scheme targets DPIIT-recognised startups that aren’t in default or classified as NPAs and are certified eligible by Member Institutions – scheduled commercial banks, select NBFCs, financial institutions, and SEBI-registered AIFs. Benefits include collateral-free debt, greater lender comfort via unconditional and irrevocable guarantees, and a stronger flow of formal credit to innovative startups across sectors and stages. It offers 85% guarantee coverage on credit facilities up to ₹10 crore, and 75% coverage on facilities up to ₹20 crore.
Scheme Overview
Central Government
Ministry Of Commerce And Industry
NCGTC
Business Entity
06 Oct 2022
Scheme Details
Eligibility Requirements
To qualify for Credit Guarantee Scheme for Startups, applicants must satisfy the following conditions:
Legal Status
Legal Status: the applicant must be recognised as a Startup by DPIIT under the applicable Gazette Notifications.
Credit History
Credit History: the applicant must not be in default to any lending or investing institution, nor classified as a Non-Performing Asset per RBI guidelines.
Certification
Certification: the concerned Member Institution must certify the applicant's eligibility before guarantee cover is granted.
Nature of Activity
Nature of Activity: the applicant must be engaged in an eligible startup business activity under DPIIT recognition, and must continue that activity for which the credit facility is sought.
Any other
Any other: the applicant must meet all other eligibility criteria and conditions the Credit Guarantee Scheme for Startups (CGSS) prescribes from time to time.
Benefits Provided
Credit Guarantee Scheme for Startups provides the following benefits to eligible applicants:
Backs eligible DPIIT-recognised startups' loans with a government…
Backs eligible DPIIT-recognised startups' loans with a government guarantee, enabling collateral-free debt funding.
Widens access to instruments such as venture debt,…
Widens access to instruments such as venture debt, working capital limits, subordinated/mezzanine debt, debentures, and other fund- and non-fund-based facilities.
Covers up to 85% of the defaulted amount…
Covers up to 85% of the defaulted amount for loans up to ₹10 crore, sharply cutting lenders' loss risk on smaller exposures.
Covers 75% of the defaulted amount for loans…
Covers 75% of the defaulted amount for loans above ₹10 crore, up to an overall cap of ₹20 crore per borrower.
Lowers the risk Member Institutions (banks, NBFCs, FIs,…
Lowers the risk Member Institutions (banks, NBFCs, FIs, AIF-based venture debt funds) take on, encouraging them to lend more freely to startups.
Supports both transaction-based and umbrella-based guarantees, covering individual…
Supports both transaction-based and umbrella-based guarantees, covering individual startup loans as well as pooled venture debt portfolios.
Charges a concessional guarantee fee/commitment charge for North…
Charges a concessional guarantee fee/commitment charge for North East units, women-led startups, and entities in the 27 Champion Sectors, cutting their effective borrowing cost.
Issues unconditional and irrevocable guarantee cover, boosting lender…
Issues unconditional and irrevocable guarantee cover, boosting lender confidence and steadying credit flow to startups.
Allows restructuring and enhancement of existing CGSS-covered credit…
Allows restructuring and enhancement of existing CGSS-covered credit facilities while keeping guarantee cover, within the overall limit.
Strengthens the startup ecosystem by widening formal credit…
Strengthens the startup ecosystem by widening formal credit availability, helping innovative startups scale, invest in technology, and create jobs.
Documents Required
Applicants should keep the following documents ready before starting the application:
The certificate of recognition issued by DPIIT
The certificate of recognition issued by DPIIT.
The startup's certificate of incorporation or registration
The startup's certificate of incorporation or registration.
The PAN Card held in the startup's name
The PAN Card held in the startup's name.
KYC papers for each promoter or director
KYC papers for each promoter or director
2022-10-06
How to Apply
Online Application
Applicants can apply for Credit Guarantee Scheme for Startups through the online application process outlined below.
Step-by-Step: Apply for CGSS via JanSamarth Portal (Online)
Open the JanSamarth Portal Visit
Open the JanSamarth Portal Visit: https://www.jansamarth.in This is the Government of India's unified credit-linked schemes platform.
Create an Account or Login
Create an Account or Login: First-time users register with a mobile number and OTP, then fill in basic details and complete login/verification.
Check Your Eligibility
Check Your Eligibility: Click "Check Eligibility" and enter: Startup entity details (PAN, Udyam, etc.), the DPIIT recognition number, and basic business information. The portal then shows whether you qualify for a Startup loan under CGSS.
Start the Loan Application Select "Loan for Startups"…
Start the Loan Application Select "Loan for Startups" / "Startup Common Application." Follow the guided online form: Verify the startup's PAN Verify Udyam details Enter the DPIIT recognition number Select the GSTIN (auto-populated where applicable) Fill in business operational and financial details Upload required documents (e.g., incorporation certificate, financials).
Provide Loan Details Enter
Provide Loan Details Enter: The loan amount needed Its purpose (working capital, term loan, etc.) Your desired repayment tenure The portal may pre-fill some fields via its PAN, GST, and other database integrations.
Submit and Match with Banks After submitting the…
Submit and Match with Banks After submitting the application: The portal matches your profile against loan products from participating public sector banks. You'll see the available bank options along with interest rates and terms.
Choose Bank & Branch Pick a bank and…
Choose Bank & Branch Pick a bank and branch (filterable by state/city) to process your loan application. Confirm your choice and forward the application to that bank.
In-Principle Sanction / Digital Approval If the bank…
In-Principle Sanction / Digital Approval If the bank finds your application acceptable: You may get an in-principle sanction digitally. Download the digital approval letter for your records.
Follow Up & Status Tracking Track your application's…
Follow Up & Status Tracking Track your application's status by logging in. Status updates may also arrive via SMS and email.
Bank Final Processing & Disbursement Once the bank…
Bank Final Processing & Disbursement Once the bank approves, standard due diligence (KYC, documents, board resolutions, etc.) proceeds. Once final sanction and documentation wrap up at the branch: The loan gets disbursed. The bank then applies for CGSS guarantee coverage (processed by the bank through NCGTC).
Offline Application
Applicants can apply for Credit Guarantee Scheme for Startups through the offline application process outlined below.
Step-by-Step: Apply for CGSS (Offline)
Visit a nearby branch of a Member Lending…
Visit a nearby branch of a Member Lending Institution. The list of Member Lending Institutions (MLIs) is available on the NCGTC website: https://www.ncgtc.in/en/product-details/CGSS/Credit-Guarantee-Scheme-for-Start-ups-(CGSS)
Get further details from the MLI and submit…
Get further details from the MLI and submit the documents it requires.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.