About this business scheme
The Credit Guarantee Scheme for Startups offers collateral-free loans up to Rs. 20 crore for DPIIT-recognised startups. The official listing gives no last date, so check the official portal for the current status before applying.
The Credit Guarantee Scheme for Startups (CGSS) helps startups access loans without needing collateral. It is run by the Ministry of Commerce and Industry, Government of India.
This scheme provides a government guarantee on loans, making it easier for startups to secure funding. It supports various types of debt instruments.
By encouraging banks and financial institutions to lend more, it fosters innovation and growth in the startup ecosystem.
Benefits at a glance
| Scheme name | Credit Guarantee Scheme for Startups (CGSS) |
|---|---|
| Launched by | Ministry Of Commerce And Industry |
| Department | Department For Promotion Of Industry And Internal Trade |
| Launch year | 2022 |
| Benefit | The Credit Guarantee Scheme for Startups offers collateral-free loans up to Rs. |
| Benefit type | In kind (goods, services or support, not cash) |
| Category | Business |
| Level / State | Central · All India |
| Official portal | startupindia.gov.in (link at the end of this page) |
Key facts
| Scheme type | Centrally Sponsored Scheme |
|---|---|
| Implementing agency | NCGTC |
| Scheme for | Infra |
| Application mode | Online / Offline |
| Last date | Not given in the official listing |
| DBT (direct bank transfer) | No |
Who can apply (quick check)
- 👤All genders
- 🎂Age 18 to 80 years
- 📝Online / Offline
Quick check from official data. Full conditions are in the Eligibility section.
What you receive
- Collateral-free loans with a government guarantee.
- Guarantee coverage of up to 85% for loans up to Rs. 10 crore.
- Guarantee coverage of 75% for loans above Rs. 10 crore, up to a maximum of Rs. 20 crore.
- Support for various debt instruments like venture debt and working capital.
Benefits are provided through participating financial institutions, which will apply for the guarantee coverage on approved loans.
Who qualifies
- You are a DPIIT-recognised startup.
- You are aged between 18 and 80 years.
- You are not in default to any lending institution.
- Your eligibility must be certified by a Member Institution.
- You are engaged in eligible startup business activities.
Who is not eligible
- Startups that are in default or classified as Non-Performing Assets (NPAs) are not eligible.
- Any startup not recognised by DPIIT cannot apply.
Papers to keep ready
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Registration walkthrough
- Online: Visit the JanSamarth Portal.
- Create an account or log in.
- Check your eligibility using your startup details.
- Fill out the loan application form.
- Submit required documents.
- Choose a bank and branch.
- Receive in-principal sanction if approved.
- Track your application status online.
- Offline: Visit a nearby branch of a Member Lending Institution.
- Submit the required documents and get more information.
To check your application's status, log into the JanSamarth Portal. You may also receive updates via SMS and email from the bank.
Important dates
| Launch / start | 06 Oct 2022 |
|---|
Real-life examples: are you eligible?
A quick way to gauge your eligibility: find the profile nearest to yours.
Every case differs. Confirm your eligibility on the official portal before applying.
- Not having DPIIT recognition, leading to automatic rejection.
- Incorrect or incomplete documentation submitted.
- Being in default on previous loans, which disqualifies applicants.
- Failing to check eligibility before applying.
- Not providing accurate financial details in the application.
Frequently asked questions
What is the Credit Guarantee Scheme for Startups?
It is a scheme that provides guarantee coverage for loans given to DPIIT-recognised startups.
Who can apply for this scheme?
Only DPIIT-recognised startups that are not in default can apply.
What is the maximum loan amount covered?
The scheme covers loans up to Rs. 20 crore.
How does the guarantee coverage work?
It offers 85% coverage for loans up to Rs. 10 crore and 75% for loans above that.
Do startups receive loans directly from the scheme?
No, loans are provided by financial institutions, not directly from the scheme.
How can I apply for benefits?
You can apply through a participating financial institution.
What types of loans are supported?
The scheme supports various debt instruments like venture debt and working capital.
What should I do if my application is rejected?
Review the reasons for rejection and ensure all eligibility criteria and documents are met before reapplying.
Submit your application yourself on the official portal; it costs nothing. Treat anyone demanding money to "get you approved" as a scam.
- Application Portal www.jansamarth.in
- Guidelines www.startupindia.gov.in (PDF)
tsmpb.in is not affiliated with any government department. Apply only on the official portal and never pay anyone for an application.
Drafted with AI tools from the official listing. Every number and date is checked automatically against the official text; confirm the details on the official portal before applying.
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