Central Govt Business & Entrepreneurship

Credit Guarantee Scheme for Startups

The Credit Guarantee Scheme for Startups (CGSS) helps DPIIT-recognised startups get collateral-free loans of up to ₹20 crore from banks and NBFCs, with the government guaranteeing 75–85% of the loan amount to protect lenders. Women-led startups, North-East India companies, and those in 27 Champion Sectors get concessional guarantee fees. Apply through the JanSamarth portal at jansamarth.in or directly approach a participating bank with your DPIIT recognition number.

Department For Promotion Of Industry And Internal Trade For: Infra Official Source

About This Scheme

Full official description

The scheme is the “Credit Guarantee Scheme for Startups (CGSS)”, notified by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India launched on 6th October 2022. The revised notification was issued on 8 May 2025 and comes into force from that date, covering loan/debt facilities sanctioned to eligible startups on or after the notification. The scope of CGSS is to provide credit guarantees on a wide range of debt instruments—such as venture debt, working capital, subordinated/mezzanine debt, debentures and other fund and non‑fund-based facilities that crystallise into debt—extended by eligible Member Institutions to DPIIT‑recognised startups. Its core objective is to offer guarantee cover up to specified limits against these credit instruments so as to enable collateral‑free debt funding for eligible startups and improve their access to institutional finance.

Salient features include transaction‑based and umbrella‑based guarantee structures, maximum guarantee cover of Rs. 20 crore per borrower, and differentiated Annual Guarantee Fee/Annual Commitment Charge slabs, with concessional rates for North‑East units, women entrepreneurs and 27 identified “Champion Sectors”. Target beneficiaries are DPIIT‑recognised startups that are not in default or classified as NPAs and are certified as eligible by Member Institutions such as scheduled commercial banks, select NBFCs, financial institutions and SEBI‑registered AIFs. Benefits include collateral‑free debt, enhanced lender comfort through unconditional and irrevocable guarantees, and improved flow of formal credit to innovative startups across sectors and stages.

It offers 85% guarantee coverage for credit facilities up to ₹10 crore and 75% guarantee coverage for facilities up to ₹20 crore.

Benefits

Collateral-free and guarantor-free debt access for DPIIT-recognised startups
85% government guarantee on loans up to ₹10 crore
75% government guarantee on loans above ₹10 crore, up to ₹20 crore per borrower
Covers venture debt, working capital, subordinated debt, debentures, and other instruments
Concessional guarantee fees for women-led startups, North-East units, and 27 Champion Sector companies
Unconditional and irrevocable guarantee — significantly improves lender confidence

Who Can Apply (Eligibility)

Must be a startup recognised by DPIIT under applicable Gazette Notifications
Must not be in default to any lending or investing institution
Must not be classified as a Non-Performing Asset (NPA) per RBI guidelines
Eligibility must be certified by the Member Institution (bank/NBFC) processing the loan
Must be actively engaged in startup activities as per DPIIT recognition

How to Apply

Online

Step-by-Step: Apply for CGSS via JanSamarth Portal (Online)

Open the JanSamarth Portal Visit: https://www.jansamarth.in n This is the Government of India’s unified credit-linked schemes platform.

Create an Account or Login: If you are a first-time user, register using a mobile number and OTP. Provide basic details and complete the login/verification process.

Check Your Eligibility: Click “Check Eligibility” and enter: Startup entity details (PAN, Udyam, etc.) DPIIT recognition number, Basic business information The portal will show whether you qualify for the Startup loan under CGSS.

Start the Loan Application

Select “Loan for Startups” / “Startup Common Application”. Follow the guided online form: Verify PAN of the startup Verify Udyam details Enter 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: Loan amount needed Purpose (working capital, term loan, etc.) Desired repayment tenure The portal may pre-fill some data via integration with PAN, GST, and other databases.

Submit and Match with Banks After submitting the application: The portal will match your profile with loan products from participating public sector banks. You will see available bank options, interest rates, and product terms.

Choose Bank & Branch Select a bank and branch (filtered by state/city) where you want to process your loan application. Confirm your choice and forward the application to that bank.

In-Principle Sanction / Digital Approval If the bank finds the application acceptable: You may receive an in-principal sanction digitally.

Download the digital approval letter for your records.

Follow Up & Status Tracking You can track your application status via login. Status updates may also be sent via SMS and email.

Bank Final Processing & Disbursement After approval from the bank, the standard due diligence (KYC, documents, board resolutions, etc.) will proceed. Once final sanction and documentation are completed at the bank branch: The loan is disbursed. The bank will then apply for CGSS guarantee coverage (handled by the bank via NCGTC).

Step-by-Step: Apply for CGSS (Offline)

Reach out to nearby branch of Member Lending Institutions. 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 more information from MLIs and submit documents as required by MLIs.

Ready to apply?

Visit the official government portal to apply for this scheme.

Apply on myScheme.gov.in