Credit Guarantee Scheme for Startups (CGSS) — Frequently Asked Questions
Answers to the questions founders most often ask about Credit Guarantee Scheme for Startups (CGSS) — who qualifies, the funding amount, required documents and how the application works.
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.
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