Credit Guarantee Scheme for Startups (CGSS) is accepting guarantee applications from eligible banks, NBFCs and Alternative Investment Funds that lend to DPIIT-recognized startups. The scheme gives collateral-free debt funding to startups by offering guarantee cover up to a fixed limit against loans extended by Member Institutions (MIs).
CGSS is run by National Credit Guarantee Trustee Company Limited (NCGTC) under Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry. The latest framework was notified through Gazette notification S.O. 2046(E) dated 8 May 2025, which replaced the earlier 2022 notification and raised the maximum guarantee cover to ₹20 crore per borrower.
Credit Guarantee Scheme for Startups 2026
Under the revised framework, guarantee cover is available in two forms - transaction based and umbrella based. For transaction based cover, the Trust pays 85% of the amount in default for loans up to ₹10 crore and 75% for loans above ₹10 crore. For umbrella based cover, the Trust pays actual losses or up to 5% of the pooled investment in startups, whichever is lower, subject to a maximum of ₹20 crore per borrower.
Startups do not get the guarantee directly. An eligible startup approaches a Member Institution for credit, and the MI applies for guarantee cover on the NCGTC portal. The guarantee is issued automatically once the eligibility parameters are met.
Highlights of CGSS
| Detail | Information |
|---|---|
| Scheme Name | Credit Guarantee Scheme for Startups (CGSS) |
| Launched By | DPIIT, Ministry of Commerce and Industry |
| Run By | NCGTC |
| Beneficiaries | DPIIT-recognized startups |
| Maximum Guarantee Cover | ₹20 crore per borrower |
| Application Mode | Online (Jan Samarth Portal) and through Member Institutions |
| Official Website | ncgtc.in |
How to Apply for CGSS
Startups can apply online through the Jan Samarth Portal or directly through a Member Institution. The steps are given below.
STEP 1 - Visit the Jan Samarth Portal at jansamarth.in and complete the online application for the Credit Guarantee Scheme for Startups.
STEP 2 - Choose a Member Institution from the list available on the Jan Samarth Portal and the NCGTC website.
STEP 3 - The Member Institution checks the feasibility and viability of the project and sanctions the credit as per its lending rules.
STEP 4 - The MI applies for guarantee cover on the NCGTC portal. The cover is issued automatically once the eligibility parameters are met.
Startups can also approach the nearest branch of any Member Institution directly for the offline process. The list of eligible Member Lending Institutions is available on the NCGTC website.
Eligible Borrower under CGSS
An entity can borrow under the scheme only if it meets all the conditions given below.
- Startup recognized by DPIIT as per Gazette Notifications issued regularly, and
- Startup not in default to any lending or investing institution and not classified as a Non-Performing Asset as per RBI guidelines, and
- Startup whose eligibility is certified by the Member Institution for the purpose of guarantee cover.
Eligible Lending and Investing Institutions
The lending and investing institutions that can give credit under the scheme are listed below.
- Scheduled Commercial Banks and Financial Institutions,
- RBI-registered Non-Banking Financial Companies (NBFCs) with a rating of BBB and above from external credit rating agencies accredited by RBI and a minimum net worth of ₹100 crore. If an NBFC is downgraded below BBB, it is not eligible for further guarantee cover until it is upgraded again, and
- SEBI-registered Alternative Investment Funds (AIFs).
Official Links for CGSS
Download the operational guidelines and check the latest details from the official sources given below.
Download CGSS operational guidelines PDF
View CGSS details and list of Member Institutions on NCGTC
Apply for CGSS on Jan Samarth Portal
FAQ's
What is the maximum guarantee cover under CGSS?
The maximum guarantee cover is ₹20 crore per borrower. For transaction based cover, the Trust pays 85% of the amount in default for loans up to ₹10 crore and 75% for loans above ₹10 crore.
Who can apply under CGSS?
DPIIT-recognized startups that are not in default and not classified as NPA can apply. The startup approaches a Member Institution, which then applies for guarantee cover on the NCGTC portal.
Is CGSS still running in 2026?
Yes, the scheme is active. The latest framework was notified on 8 May 2025 and continues to provide guarantee cover to eligible startups.