DPIITCGSS
Credit Guarantee Scheme for Startups (CGSS)
A government guarantee that lets banks and NBFCs offer collateral-free loans to DPIIT-recognised startups — cover up to 85% of a default and a ceiling of ₹20 crore per borrower, applied for through your member lender.
NOTICE
This service is free. We will never ask for payment. If anyone offers to apply on your behalf for a fee, they are not us.
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Up to ₹₹20,00,00,000
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Apply on official portalOpens the official portal · We never charge
Official fee
₹0 — completely free
There is no fee for a startup to be covered under CGSS. The annual guarantee fee is paid by your lender, not by you, and you never apply to CGSS directly.
Beware of lookalike portals
CGSS is operated only by NCGTC for member lenders. Anyone asking you to pay them to 'sanction' or 'guarantee' a CGSS loan is a scam — the guarantee is arranged by your bank or NBFC.
Only the "Apply on official portal" button above leads to the verified government site.
Highlights and Media
Key Highlights
Up to ₹20 Crore Cover
High ceiling for credit guarantees backing qualified loans, venture debt, or working capital.
Collateral-Free Debt
Enables DPIIT-recognized startups to raise debt without pledging personal or business assets.
Zero Fee for Startups
The annual guarantee fee (1%-2%) is paid directly by the member lender, not the startup.
CGSS Default Guarantee Coverage
Percentage of loan amount guaranteed by NCGTC based on loan slabs
NCGTC guarantees up to 85% of the default amount for standard startup loans in this bracket.
Guarantee cover reduces to 75% for loan amounts exceeding ₹10 Crore up to the ₹20 Crore limit.
Who is eligible
- Entity is DPIIT-recognised
- You are looking for funding — CGSS backs collateral-free debt
Eligibility rules · v1 · effective 6 October 2022
Who is not eligible
- CGSS helps when you need debt funding; add a funding goal to see if it fits.
- CGSS only backs loans to DPIIT-recognised startups — get DPIIT recognition first.
How to apply
Confirm DPIIT recognition
CGSS-backed credit is only for DPIIT-recognised startups, so have your recognition certificate ready.
Approach a member lender
Apply for a collateral-free loan with a bank, NBFC, or AIF that is a CGSS member lender.
Typical duration · 7 days
Lender appraises and arranges the guarantee
If the lender approves your loan, it registers the guarantee with NCGTC and pays the guarantee fee — you do not.
Typical duration · 30 days
Loan is sanctioned and disbursed
The lender disburses the collateral-free debt once the guarantee is in place.
Sources
- Startup India — Credit Guarantee Scheme for Startups (CGSS)MINISTRY_PORTAL · Fetched 5 July 2026
- NCGTC — operating trustee for CGSSMINISTRY_PORTAL · Fetched 5 July 2026
Additional Details
The Credit Guarantee Scheme for Startups (CGSS) was notified by DPIIT on 6 October 2022 and is operated by NCGTC as trustee. It backs lenders — banks, NBFCs, and SEBI-registered AIFs — so they can give DPIIT-recognised startups collateral-free debt, including venture debt, working capital, and convertible or mezzanine debt.
The guarantee covers 85% of the default amount on loans up to ₹10 crore and 75% on amounts above ₹10 crore, with a ceiling of ₹20 crore of guarantee per borrower. For pooled investments by an AIF, umbrella cover of up to 5% is available.
The annual guarantee fee is 2% in general, 1.5% for women-led or North-East startups, and 1% for the 27 Champion Sectors. Importantly, the lender pays this guarantee fee, not the startup.
You do not apply to CGSS yourself, and applying is free. You approach a member lender for the loan, and the lender arranges the guarantee through NCGTC. Never pay an agent to 'get you' a CGSS guarantee — there is no such fee for the startup.
Related / Stackable schemes
DPIIT·₹5,00,000 – ₹50,00,000
Startup India Seed Fund Scheme (SISFS)
Up to ₹20 lakh grant for proof-of-concept / prototyping, or up to ₹50 lakh debt for market entry — for early-stage DPIIT-recognised startups, via approved incubators.
DPIIT
DPIIT Startup Recognition
Government recognition for innovative startups — unlocks tax holidays (80-IAC), self-certification, and access to SISFS, CGSS, and SIPP.