Credit Guarantee Scheme for Startups (CGSS)
A programme by Department for Promotion of Industry and Internal Trade (DPIIT) (Department for Promotion of Industry and Internal Trade)
Provides credit guarantee up to a specified limit against loans extended by Member Institutions (MIs) to finance eligible DPIIT recognised Startups.
About Credit Guarantee Scheme for Startups (CGSS)
The Credit Guarantee Scheme for Startups (CGSS) is aimed at providing credit guarantee up to a specified limit against loans extended by Member Institutions (MIs) to finance eligible borrowers viz. Startups as defined in the Gazette Notification issued by the Department for Promotion of Industry and Internal Trade (DPIIT) and amended from time to time. The revised framework has enhanced guarantee coverage, increasing the maximum limit from ₹10 crore to ₹20 crore per eligible borrower. For transaction-based guarantee cover: 85% of the amount in default for loan amount up to Rs. 10 crore, 75% of the amount in default for loan amount exceeding Rs. 10 crore. For umbrella-based guarantee cover: The Trust shall provide guarantee cover of actual losses or up to a maximum of 5% of Pooled Investment on which cover is being taken from the fund in Startups, whichever is lower, subject to a maximum of Rs. 20 crore per borrower.
Where to apply
Other DPIIT programmes
- Startup India Seed Fund Scheme (SISFS)Provides financial assistance to startups for proof of concept, prototype development, product trials, market entry, and commercialisation.
- MAARG (Mentorship, Advisory, Assistance, Resilience and Growth Portal)Facilitates intelligent matchmaking between mentors and startups across varied sectors at scale.
- National Startup AwardsA marquee initiative by Startup India, DPIIT, to recognise exceptional startups across India, creating economic impact and larger societal impact.
- SCO Startup ForumSpecialised activity conducted by DPIIT as the Chair of the SWG for Startups and Innovation, to provide assistance for the development and sustainable growth of the startup ecosystem in SCO Member States.
- Startup India Investor ConnectA dedicated platform that connects startups to investors, promotes entrepreneurship, and accelerates engagements across diverse sectors, functions, stages, geographies, and backgrounds.
- BHASKAR (Bharat Startup Knowledge Access Registry)A one-stop digital platform where diverse startup ecosystem stakeholders can seamlessly connect and collaborate.
- States’ Startup Ecosystem RankingAn annual capacity building exercise to build a conducive startup ecosystem across the country through sustained efforts of States and Union Territories.
- DPIIT RecognitionEligible companies can get recognised as Startups by DPIIT, in order to access a host of tax benefits, easier compliance, IPR fast-tracking and more.
- Self CertificationReduces the regulatory burden on Startups, allowing them to focus on core business and keep compliance costs low.
- Startup Patent Application & IPR ApplicationReduces the cost and time for a startup to acquire a patent, making it financially viable to protect innovations.
- Tax Exemption under Section 80IACEligible startups can be exempted from paying income tax for 3 consecutive financial years out of their first ten years since incorporation.
- Easy Winding up of CompanyMakes it easier for Startups to shut down or wind up operations, allowing entrepreneurs to reallocate capital and resources faster.
- Easier Public Procurement NormsMakes it easier for startups to participate in the public procurement process and access another potential market for their products.
- DST - Technology Business Incubator (TBI) SchemePromotes new technology/knowledge/innovation based startups and provides a platform for speedy commercialisation of technologies by supporting the establishment of TBIs.
- DBT - BioNest SchemeScales up biotech incubation in India through BIRAC by supporting new BioNest at Academic/Research hospitals/organisations, fostering innovation and entrepreneurship, and strengthening existing incubators.
- AIM – Atal Incubation Centres (AIC) SchemePromotes and establishes incubation centres in India that would support and encourage start-ups in specific subjects/sectors.
- MeitY – TIDE 2.0 SchemeAims to establish Incubation centres categorised into 3 distinct groups (G1C, G2C, G3C) to offer deep support to startups and nurture innovation ecosystems.
- Startup India Fund of Funds SchemeA corpus for contribution to various AIFs registered with SEBI for funding of startups.
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