Credit Guarantee Scheme for Startups (CGSS)
Under Credit Guarantee Scheme for Startups (CGSS) by Department for Promotion of Industry and Internal Trade (DPIIT)
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Quick Answer
Credit guarantee cover up to Rs 20 crore that lets banks, NBFCs and AIFs lend to DPIIT-recognised startups without collateral. You receive a loan and repay it. CGSS is not a grant.
About this loan
The Credit Guarantee Scheme for Startups (CGSS) aims to provide credit guarantee up to a specified limit against loans extended by Member Institutions (MIs) to finance eligible startups recognized by DPIIT. The scheme facilitates collateral-free funding to startups that have reached a stable revenue stage and are amenable to debt financing. The guarantee cover can be transaction-based or umbrella-based (for SEBI-registered AIFs).
Eligibility
See if you're eligible
Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Grant providers
DPIIT – Startup India The Department for Promotion of Industry and Internal Trade (DPIIT), under India's Ministry of Commerce and Industry, is the nodal authority for the Startup India initiative — the Government of India's flagship programme launched on 16 January 2016 to build…
Learn moreOverview The Small Industries Development Bank of India (SIDBI) is the principal financial institution for the promotion, financing and development of the Micro, Small and Medium Enterprise (MSME) sector in India. Established on 2 April 1990 under an Act of Parliament, SIDBI…
Learn moreExport-Import Bank of India (Exim Bank) The Export-Import Bank of India (Exim Bank) is India's premier export finance institution, established in 1982 under the Export-Import Bank of India Act, 1981. Wholly owned by the Government of India and operating under the Ministry of…
Learn moreHost Institutes · 40
View allSmall Industries Development Bank of India (SIDBI)
Lucknow · Uttar Pradesh · India
Export-Import Bank of India (Exim Bank)
Mumbai · Maharashtra · India
YES BANK
Mumbai · India
+37 more Host Institutes across India can incubate this program.
Benefits & Funding
- Amount
- Up to ₹20 Cr
- Fund type
- Debt
- Equity
- Equity-free
- Repayment
- Repayable
What You Get
CGSS provides a credit guarantee of up to ₹10 crore against loans extended by Member Institutions (MIs) to DPIIT-recognised startups, enabling collateral-free debt financing once a startup reaches a stable revenue stage. Guarantee cover can be transaction-based (per-loan) or umbrella-based, the latter available to SEBI-registered Alternative Investment Funds (AIFs). The scheme is backed by the Department for Promotion of Industry and Internal Trade (DPIIT).
Timelines & Process
Applications
Rolling basis
How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
Answer the form inside the grant tracker — AI drafts each response using your past answers, so you're not starting from a blank page.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
Is CGSS a grant or a loan?
Neither, strictly. CGSS is a credit guarantee, meaning a risk cover given to your lender. What you receive is a loan from a bank, NBFC or AIF, which you repay with interest. No money is disbursed to the startup by the scheme itself, and there is no grant or subsidy component.
Do I get Rs 20 crore under CGSS?
No. Rs 20 crore is the maximum guarantee cover per borrower, not a loan you receive. Your loan amount is whatever your lender sanctions after its own credit appraisal, and the guarantee covers a share of the lender's loss if you default.
How much of the loan is covered by the guarantee?
For transaction-based cover, 85 percent of the amount in default on loans up to Rs 10 crore, and 75 percent of the amount in default on loans above Rs 10 crore. Cover is capped at Rs 20 crore per borrower.
What changed in the 2025 CGSS expansion?
The gazette notification dated 8 May 2025 raised the guarantee ceiling per borrower from Rs 10 crore to Rs 20 crore and increased the extent of cover to 85 percent of the amount in default on loans up to Rs 10 crore and 75 percent above that. Many pages about this scheme still quote the old Rs 10 crore ceiling.
Do I need collateral for a CGSS loan?
No. Removing the collateral requirement is the entire purpose of the scheme. The guarantee stands in place of security, which is what lets a lender approve credit for a startup with no assets to pledge. Note that this is separate from a personal guarantee, which your lender may still ask promoters to provide.
Is CGSS free for the startup?
No. An Annual Guarantee Fee is charged on the guaranteed amount every year the guarantee is live, and lenders generally pass it to the borrower. A CGSS-backed loan is more expensive than an equivalent secured loan. It buys access to credit, not a cheaper rate.
What interest rate will I pay on a CGSS loan?
The scheme does not set the interest rate. Your Member Institution prices the loan on its own credit policy, so the rate, tenure and moratorium vary between lenders for an identical borrower. This is why it is worth approaching more than one institution.
Can a pre-revenue startup use CGSS?
Generally no. The scheme requires a stable revenue stream assessed from audited monthly statements over twelve months, and that the startup be amenable to debt financing. Pre-revenue companies should look at the Startup India Seed Fund Scheme or equity instead.
Where do I apply for CGSS?
Two routes. Online, through the Startup Common Application on the Jan Samarth portal (jansamarth.in), which checks eligibility and routes you to participating Member Institutions. Or offline, by approaching the nearest branch of a Member Institution directly. Either way you are applying for a loan, not to the scheme: the lender underwrites you on its own credit policy and lodges the guarantee with NCGTC. You never contact NCGTC yourself.
Which lenders participate in CGSS?
Three categories of Member Institution qualify: scheduled commercial banks and financial institutions; RBI-registered NBFCs with a minimum BBB+ rating and net worth of at least Rs 100 crore; and SEBI-registered Alternative Investment Funds, which is the route venture debt funds use. Participation varies by institution, so confirm with the specific bank.
Is DPIIT recognition mandatory for CGSS?
Yes, without exception. The scheme covers loans to startups recognised by DPIIT under the Startup India gazette notifications. No recognition means no cover. DPIIT recognition itself requires the entity to be within 10 years of incorporation, to have had turnover below Rs 100 crore in every previous financial year, and to be a private limited company, registered partnership firm or LLP.
How long does a CGSS loan take?
The scheme sets no timeline, because the loan is your lender's decision. Founders commonly report two to four weeks from complete application to disbursal, though this depends heavily on how clean your audited financials are and whether the branch has processed CGSS cases before.
Sources
Data on this page is compiled from official program and provider references.
