§1Who it is for

  • DPIIT-recognised startups borrowing from banks, NBFCs or venture-debt AIFs

Useful if

Revenue-earning startups needing working capital or venture debt.

Do not spend time on it if

Pre-revenue startups.

§2Eligibility

  1. Borrower must be a DPIIT-recognised startup.
  2. Lender must be a Member Institution: scheduled commercial bank/FI, RBI-registered NBFC, or SEBI-registered AIF.

§3Benefits

  • Guarantee up to ₹20 crore or actual outstanding credit, whichever is less (transaction-based and umbrella cover).
  • Reduced guarantee fee of 1% for loans in 27 priority sectors (Budget 2025-26).

§4Norms — pattern of assistance

  1. Collateral-free working capital, term loans and venture debt.

§5Documents

Not published

The guideline does not list the documents. Ask the portal or bank before you apply — we do not make up lists.

§6How to apply

  1. 1

    Ask a member lender; or apply via Jan Samarth portal (business loan — startup scheme).

§7Pros and cons

Merits

  • Lets startups borrow without collateral.
  • Cover doubled to ₹20 crore.

Demerits

  • Lender still decides; small numbers so far (135+ loans in FY2025-26) (PIB).
  • Only DPIIT-recognised startups qualify.

→Related schemes

Need help with CGSS?

Eligibility check, DPR and application file — ask us on WhatsApp.

WhatsApp usServices

Our interestHelp is our paid service. You can also apply for the scheme yourself.

Sources

  1. Startup India: Playbook of Government Schemes and Initiatives for Startups (June 2026)
  2. PIB, 17 Apr 2026: 55,200+ startups recognised in FY 2025-26 (FFS, SISFS, CGSS status)
  3. PIB, 4 Feb 2025: Budget 2025-26 — Fuelling MSME Expansion
  4. NCGTC: Credit Guarantee Scheme for Start-ups (CGSS)

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.