Credit Guarantee Scheme for Startups (CGSS)
Credit guarantee scheme for DPIIT-recognized startups to obtain collateral-free loans up to ₹10Cr via member institutions.
- Funding amount
- ₹10Cr (debt / loan)
- Funding type
- Debt / Loan
- Provider
- Department for Promotion of Industry and Internal Trade (DPIIT) (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The Credit Guarantee Scheme for Startups (CGSS), managed by the Department for Promotion of Industry and Internal Trade (DPIIT), provides a credit guarantee to member institutions that extend loans to eligible DPIIT-recognized startups. This guarantee enables startups to access collateral-free debt funding once they have reached a stable revenue stage and are suitable for debt financing. The guarantee cover can be structured on a transaction basis for individual loans or on an umbrella basis for SEBI-registered Alternative Investment Funds (AIFs). The scheme is designed to reduce the risk for lenders, making it easier for startups to obtain credit without pledging assets.
Highlights
- Provides collateral-free debt funding through credit guarantee from DPIIT.
- Maximum guarantee cover of ₹10 crore per borrower startup.
- Open to DPIIT-recognized startups with a stable revenue stream (audited 12-month statements).
- Guarantee can be transaction-based (per loan) or umbrella-based (for SEBI-registered AIFs).
- No direct application to NCGTC; startups must apply through member institutions (banks, NBFCs, AIFs).
- Rolling application – no fixed deadline.
Who can apply
Only startups that are recognized by DPIIT under the relevant Gazette Notifications can apply. The startup must have a stable revenue stream, assessed from audited monthly financial statements over 12 months, and be considered amenable to debt financing by the member institution. The startup must not be in default to any lending or investing institution, nor classified as a non-performing asset (NPA) under RBI guidelines. The maximum guarantee coverage per borrower is ₹10 crore. The final eligibility certification rests with the Member Institution (MI) that processes the loan.
Credit Guarantee Scheme for Startups (CGSS) is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
Credit Guarantee Scheme for Startups (CGSS) accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.
What the funding covers
Eligible startups receive a credit guarantee on loans extended by member institutions, enabling collateral-free borrowing up to ₹10 crore. This allows startups to raise debt without pledging personal or business assets. The guarantee cover can be transaction-based (covering a specific loan) or umbrella-based (covering multiple investments by SEBI-registered AIFs). Startups also benefit from faster loan processing as the guarantee reduces risk for lenders.
About the provider
Credit Guarantee Scheme for Startups (CGSS) is offered by Department for Promotion of Industry and Internal Trade (DPIIT), a government body. As a government-backed debt / loan, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.
How to apply
Applications are submitted on the official portal. Confirm the current deadline and document checklist there before you start.
Selection process
Startups first approach a Member Lending Institution (MLI) such as a Scheduled Commercial Bank, a Financial Institution, an RBI-registered NBFC (with a rating of BBB or above and net worth of ₹100 crore), or a SEBI-registered Alternative Investment Fund (AIF). The MLI evaluates the startup's eligibility, including revenue stability and creditworthiness, and assesses project viability. If satisfied, the MLI applies for a guarantee cover on the National Credit Guarantee Trustee Company (NCGTC) portal. Startups do not apply directly to NCGTC; the entire process is driven by the member institution.
Documents you’ll need
Before you apply to Credit Guarantee Scheme for Startups (CGSS), keep the following documents ready:
- A pitch deck or short business plan describing the problem, product and traction
- Company registration documents and PAN
- Founder identification (PAN / Aadhaar) and brief profiles
- Recent financial statements or projections
- Product details — a demo, prototype or working link if available
Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.
Who this is best for
Credit Guarantee Scheme for Startups (CGSS) is best suited for startups in India seeking non-dilutive funding of ₹10Cr. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
What is the maximum funding available under CGSS?
The maximum guarantee coverage per borrower is ₹10 crore, which enables startups to obtain loans up to that amount on a collateral-free basis.
What is the application deadline for CGSS?
There is no fixed deadline; the scheme is rolling and always open for applications through member institutions.
Who is eligible to apply for CGSS?
Only startups that are recognized by DPIIT under the Gazette Notifications are eligible. They must have a stable revenue stream (assessed from audited monthly statements over 12 months) and be suitable for debt financing. The startup must not be in default to any lending institution or classified as an NPA.
What types of entities can apply?
The scheme covers DPIIT-recognized startups. The specific entity types (private limited, LLP, etc.) are determined by DPIIT recognition criteria. Startups should ensure they have valid DPIIT recognition before approaching member institutions.
Is DPIIT registration required for CGSS?
Yes, the startup must be recognized by DPIIT as per the relevant Gazette Notifications to be eligible.
Is MSME registration required?
The provided information does not mention MSME registration as a requirement. DPIIT recognition is the key eligibility criterion.
Does CGSS take equity in the startup?
No, CGSS is a credit guarantee scheme for debt financing. The guarantee facilitates collateral-free loans, so no equity is taken from the startup.
What documents are typically needed to apply?
The member institution will require audited monthly financial statements for the past 12 months to assess stable revenue, along with other standard loan documents. They will also verify DPIIT recognition status and any details needed for guarantee cover on the NCGTC portal.
How and where do I apply for CGSS?
Startups do not apply directly to NCGTC. Instead, they approach a Member Lending Institution (MLI) such as a Scheduled Commercial Bank, an RBI-registered NBFC (with BBB+ rating and net worth of ₹100 crore), or a SEBI-registered AIF. The MLI then applies for the guarantee cover on the NCGTC portal on behalf of the startup.
What is the role of the Member Lending Institution?
The MLI evaluates the startup's eligibility, verifies revenue stability, assesses project viability, and applies for the guarantee cover. They are the primary point of contact for startups seeking CGSS benefits.
Who offers Credit Guarantee Scheme for Startups (CGSS)?
Credit Guarantee Scheme for Startups (CGSS) is offered by Department for Promotion of Industry and Internal Trade (DPIIT), a government body. It is provided as non-dilutive funding.
How do I apply for Credit Guarantee Scheme for Startups (CGSS)?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.
More funding from Department for Promotion of Industry and Internal Trade (DPIIT)
Department for Promotion of Industry and Internal Trade (DPIIT) runs 4 other programs listed on startupfunds — compare them before you decide where to apply.
Alternatives to Credit Guarantee Scheme for Startups (CGSS)
Not sure Credit Guarantee Scheme for Startups (CGSS) is the right fit, or already applied? These are other debt open to Indian startups that founders shortlist alongside it.
Questions from founders
Ask anything about eligibility, documents or the process — answered by the community.
No questions yet — be the first to ask.