Credit Guarantee Scheme for Startups

Submitted by pradeep on Fri, 10/05/2024 - 17:26
Scheme Open
Credit Guarantee Scheme for Startups Logo
  • Under the Credit Guarantee scheme for Startups, the beneficiary may avail the following benefits.
  • You will get credit guarantee against your loan from Member of Institutions.
  • Avail of a collateral free credit or loan.
  • Maximum guarantee cover under the scheme is 10 Cr or your outstanding credit amount, whichever is lower.
Customer Care
  • Credit Guarantee Scheme for Startups Helpline: 1-800-115-565
  • Credit Guarantee Scheme for Startups Helpdesk:
Overview of the Scheme
Name of the Scheme Credit Guarantee Scheme for Startups
Launch Year 2022
Benefits Hassle and Collateral Free Credit or Loans
Beneficiary DPIIT Register Startups
Nodal Department Ministry of Commerce and Industry
Subscription Subscribe here to get Update Regarding Scheme
Mode of Apply

Applicants may register for DIPP Recognition Online

Application process for Start-up Credit Guarantee Scheme is offline


  • After US and China, India stands as the third largest hub for startup globally.
  • According to the DPIIT, there are currently 123,073 DPIIT recognised startup operational in India.
  • Remarkably, around 48% of these startups are from Tier 2 and Tier 3 cities.
  • However, despite the burgeoning startups ecosystem, many start-ups failed to sustained because of the financial crunch.
  • Recognising this issue, the government has taken some proactive steps to support the startup body.
  • In view to, the government announced the Credit Guarantee Scheme for Startups in 2022.
  • Under this scheme, the beneficiary will get a credit guarantee up to specified limit against the loan issued by the Scheduled Banks, NBFCs etc.
  • Along with this, they will get a collateral free credit or loan from the institutions.
  • For individuals, the maximum guarantee is capped at 10 Cr or the actual credit amount, whichever is less.
  • The guarantee offering under the scheme would be transaction based and umbrella based.
  • On a single borrower basis, the Transaction Based Guarantee is provided to Member of Institution (As of 2024, there are 31 registered MIs).
  • Whereas, Umbrella Based Guarantee offers guarantee to Venture Based Funds (VDF) registered under the AIF Regulation of SEBI.

Benefits of Scheme

  • The foremost benefit of the Credit Guarantee Scheme for Startups (CGSS) is they are offering Credit guarantee against your loan.
  • Secondly, beneficiary will get a collateral free credit or loan from the MIs.
  • Individual will receive a maximum credit guarantee of Rs 10 Cr or their actual outstanding credit amount, whichever is lower.
  • Guarantee offers under the CGSS is transaction based or Umbrella Based.
Scheme Type Default Cover Offered
Transaction Based Guarantee

80% if Loan amount is 3 Cr.

75% if the loan amount is above 3 Cr.

65% if the loan amount is above 5 Cr (up to 10 Cr).

Umbrella Based Guarantee Actual loss or 5% of the pooled investment, whichever is lower (maximum 10 Cr per borrower).

Eligibility Criteria

  • To borrow Credit Guarantee under the CGSS have some specific criteria for startups, that are as follows:
    • Startups must be registered and recognised by the DPIIT.
      • For this, the company age or its operation should not exceed 10 years.
      • Company must be incorporated as a Private limited or Registered partnership firm or Limited Liability Partnership.
      • Since Inception, the Annual turnover of the company should not exceed Rs 100 Cr.
      • Innovation and scalability are two prime aspects of the company which may generate wealth and employment.
      • Ensure the company should not have any connection to splitting or reconstruction of any existing business.
    • As per the RBI Guidelines, Startups must not be defaulted by any institution and labelled as Non Performing Asset.
    • The Member of Institution certifies the eligibility for guarantee cover of the startup.
    • Must have generated a stable revenue over the last 12 months.
    • Scheduled bank and NBFCs must have a rating of BBB and above.

Documents Required

  • Applicants must submit the documents in support of their Credit Guarantee Scheme for Startups application as required by the Member of Institution.
    • PAN Card
    • Company Registration Certificate
    • Revenue Details
    • Voter ID
    • Aadhaar Card
    • Passport Size Photograph
    • Residence Proof
    • Company Address Proof
    • DIPP Recognition Certificate
    • As required by the Member of Institution.

How to apply

  • As the Guarantee is offered by the Registered MIs to eligible startups that are recognised by the DIPP.
  • If your startup is not DIPP recognised then you have to recognised it first.
  • For that, you have to create an investor account, if you don't have already.
  • You can create your investor account by visiting the National Single Window System Website.
  • Post Registration, login to the portal with the generated details.
  • Thereafter, you can fill the 'Registration as a Startup' Application form with the required details.
  • Once your startup get recognition on DIPP, then you can apply for a credit or loan offline from the Member of Institution that are on the NCGTC panel.
  • As of 16 Feb, 2024, there are 31 MIs registered whose details are given as
Institutions Type Name of the institution
Public Sector Bank

Bank of Baroda

Bank of India

Bank of Maharashtra

Canara Bank

Central Bank of India

Indian Bank

Punjab & Sind Bank

Punjab National Bank

State Bank of India

UCO Bank

Union Bank of India

Private Banks

Axis Bank


IDFC First Bank


Karnataka Bank

Tamiland Mercantile Bank

Karur Vysya Bank

Yes Bank

Foreign Bank Standard Chartered Bank
Small Finance Bank AU Small Finance Bank Limited
AIFs RevX Capital Fund-I
Financial Institutions




Caspian Impact Investments Private Limited

Incred Financial Services Limited

Samunnati Financial Intermediations & Services Private Limited


Important Link

Contact Details

  • Credit Guarantee Scheme for Startups Helpline: 1-800-115-565
  • Credit Guarantee Scheme for Startups Helpdesk:
  • INVEST INDIA, 110, Vigyan Bhavan Annexe, 001, Maulana Azad Road, New Delhi 110 001
Person Type Scheme Type Govt

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