CGSS · DPIIT · NCGTC
Credit Guarantee Scheme for Startups
Guarantee cover for loans to DPIIT-recognised startups, operated by NCGTC. Enables venture debt and working capital without collateral, up to ₹20 crore per borrower.
- Ceiling
- ₹20 Cr per borrower
- Cover
- 85% / 75%
- Fee
- 1%–2% p.a.
Key features
What the scheme actually provides
- Cover of 85% of the amount in default for loans up to ₹10 crore, and 75% above that
- Maximum guarantee of ₹20 crore per borrower, shared across member institutions
- Eligible instruments include venture debt, working capital, subordinated debt, debentures and optionally convertible debt
- Annual guarantee fee of 2% p.a., reduced to 1.5% for women-led and North Eastern units and 1% for units in notified champion sectors
- No interest subvention — the scheme removes the collateral requirement, it does not reduce the rate
- Eligibility is certified by the member institution, not by DPIIT or NCGTC
Who is eligible
- Valid and current DPIIT Startup recognition
- Entity not in default to any lending or investing institution and not classified as NPA
- Facility from an NCGTC-registered member institution
- Facility not covered under any other guarantee scheme
- Within the ₹20 crore per-borrower ceiling across the system
Benefits
- Debt without diluting equity, for startups with visible revenue
- Collateral-free structure for asset-light businesses
- Access to venture debt through regulated lenders rather than only funds
Where we come in
How FIN.SWITCH handles a CGSS for startups file
- 01
Verify all three eligibility limbs before the file is built
- 02
Map your activity to a champion sector on substance, and carry the resulting fee rate into the model
- 03
Show the guarantee fee as a distinct finance cost in every projected year, so DSCR is not overstated
- 04
Present startup metrics in the language a credit committee uses
Questions
CGSS for startups, answered plainly
No. The member institution certifies eligibility and appraises the proposal on ordinary prudent banking judgement. There is no relaxed appraisal under the scheme.
If you are both a DPIIT-recognised startup and an MSME, you must choose — they are mutually exclusive on the same facility. The right answer depends on ticket size, cover slab and fee.
Compare
Other schemes worth looking at
Not sure whether CGSS for startups fits your business?
The eligibility check takes two minutes and gives you an indicative shortlist across every scheme we file under.