Empowering the MSMEs with instant access and instant solutions.

To cater Start-ups business segment

  • Objective
  • Features
  • Eligibility
  • Interest rates & charges

Credit Guarantee Scheme for Start-ups (CGSS) : Objective

To provide credit guarantee coverage by the Department for Promotion of Industry and Internal Trade (DP/IT), Ministry of Commerce and Industry, Government of India through National Credit Guarantee Trustee Company Limited (NCGTC) on debt facilities extended by banks to Start-ups recognized by the DPIIT.

Credit Guarantee Scheme for Start-ups (CGSS) : Features

  • For credit facilitates extended to Start-ups, the NCGTC shall provide Transaction-based guarantee cover to Banks wherein Banks are also allowed to obtain collateral security from the borrower. However, NCGTC guarantee shall be limited to outstanding limit less the value of collateral security.
  • For this scheme, Guarantee fee @ 2% p.a. on sanction amount is to be paid. For units from North-East Region and Woman entrepreneurs, the guarantee fee is 1.50% p.a.
  • However, in all cases, the maximum guarantee coverage is Rs. 10 crores per borrower.
  • The extent of guarantee cover is linked to original loan amount as below:

Original Loan Amount Extent of Credit Guarantee cover
Upto Rs. 3 Crores 80% of the default amount
Above Rs. 3 crores & upto Rs. 5 crores 75% of the default amount
Above Rs. 5 crores 65% of the default amount

Credit Guarantee Scheme for Start-ups (CGSS) : Eligibility

  • Start-up as recognized by DPIIT as per Gazette Notification(s) issued from time to time; and
  • Start-ups that have reached stage of stable revenue stream, as assessed from audited monthly statements over a 12 month period, amenable to debt financing, and
  • Start-up not in default to any ending/ investing institution and not classified as Non-Performing Asset as per RBI guidelines; and
  • Start-up whose eligibility is certified by the Bank for the purpose of guarantee cover.
  • If the existing borrower has availed BGECL and wants to avail CGSS, BGECL loan shall need to be closed.
  • Real Estate projects not allowed.

  • As allowed in Gazette of India dated 19.02.2019 (attached as Annexure- B) and as updated from time to time.
  • HUF not allowed.

Facility Type

Fund and Non-Fund Based facilities.

Loan Amount

Maximum – Rs.15.00 Crores

However, NCGTC guarantee amount is limited only upto Rs. 10 crores (Including FB & NFB exposure) per borrower.


As per GCEMP / Bank Guidelines, as updated from time to time.

Internal Credit Rating-

Minimum BOB-6/CR-6 as per Bank Guidelines, as updated from time to time.

Credit Guarantee Scheme for Start-ups (CGSS) : Interest rates & charges

Click Here to know more.

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