About this programme
The Credit Guarantee Scheme for Startups (CGSS) provides credit guarantee cover against loans extended by eligible lenders to DPIIT-recognised startups. The scheme enables collateral-free debt funding through venture debt, working capital, subordinated debt, and other facility types. The National Credit Guarantee Trustee Company (NCGTC) administers the scheme, with the maximum guarantee per borrower increased to ₹20 crore. It is run by DPIIT / NCGTC.
A credit guarantee helps you borrow by covering part of the lender’s risk, so eligible businesses can access loans they might not get otherwise. The amount and form of support that actually apply to you depend on the programme’s rules and how your application is assessed — they are not fixed for every applicant.
It is aimed at businesses in pan-sector — any dpiit-recognised startup seeking collateral-free debt funding. Like most government programmes, it has its own eligibility conditions, documentation and application window, and these terms are revised from time to time. Because of that, it is worth confirming the current eligibility, amount and deadline on the official programme page before you invest time in applying.
How it works
A DPIIT-recognised startup approaches an eligible lending institution which evaluates the loan application. If sanctioned, the lender applies to NCGTC for guarantee coverage. NCGTC provides guarantee cover to the lender on a transaction-based or umbrella-based basis. Transaction-based: 85% guarantee for loans up to ₹10 crore, 75% for loans exceeding ₹10 crore. Umbrella-based: guarantee covers actual losses or 5% of pooled investments (whichever is lower), capped at ₹20 crore per borrower.
Who can apply
DPIIT-recognised startups that are not in default to any lending/investing institution and not classified as non-performing assets per RBI guidelines. Loans must be from Scheduled Commercial Banks, RBI-registered NBFCs (rated BBB+ and above with ₹100 crore minimum net worth), or SEBI-registered Alternative Investment Funds (venture debt funds).
How to apply
- Ensure your startup is recognised by DPIIT (check official gazette notification)
- Approach an eligible lending institution (schedule commercial bank, registered NBFC, or registered AIF)
- Submit loan application with business plan and financial projections
- Obtain certification of eligibility from the lending institution
- Lender applies to NCGTC for guarantee cover
- NCGTC issues guarantee coverage upon approval
Documents you’ll typically need
- DPIIT recognition certificate
- Detailed business plan and financial projections
- Proof of promoters' background and experience
- Market research and competitive analysis
- Bank statements and financial records
- Project report (for term loans)
The exact checklist depends on the programme and your specifics.
Frequently asked
What is the maximum guarantee coverage under CGSS?
The scheme provides guarantee cover up to ₹20 crore per eligible borrower, increased from the previous limit of ₹10 crore.
How much of the loan does NCGTC guarantee?
Under transaction-based guarantee, NCGTC covers 85% of default for loans up to ₹10 crore and 75% for loans exceeding ₹10 crore. Under umbrella-based guarantee, it covers actual losses or 5% of pooled investments, whichever is lower.
Which types of loans are covered by CGSS?
CGSS covers venture debt, working capital, subordinated debt, mezzanine debt, debentures, optionally convertible debt, and other fund-based and non-fund-based facilities that have crystallized as debt obligations.
Reviewed July 2026. Government programmes change — confirm current eligibility, amounts and deadlines on the official programme page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.