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Govt to provide collateral-free loans to start-ups under CGSS framework

The credit guarantee cover under the scheme would be both transaction-based (for single eligible borrowers) and umbrella-based (for a group of eligible borrowers)

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CGSS is expected to complement the existing schemes under Startup India initiative such as Fund of Funds for Startups and Startup India Seed Fund Scheme to mobilise domestic capital for Indian startups

Asit Ranjan Mishra New Delhi
The Department for Promotion of Industry and Internal Trade (DPIIT) on Friday notified the establishment of the Credit Guarantee Scheme for Start-ups (CGSS). It would provide collateral-free debt funding up to Rs 10 crore for start-ups extended by commercial banks, non-banking financial companies (NBFCs) and Securities and Exchange Board of India (Sebi)-registered alternative investment funds (AIFs).

The scheme, earlier envisaged as part of the Start-up India Action Plan, was proposed to have a corpus of Rs 2,000 crore. However, the latest notification doesn’t mention the corpus amount.

The credit guarantee cover under the scheme would be both transaction-based (for single

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