India Expands Credit Guarantee Scheme for Startups to Boost Innovation
| Key Aspect | Details |
|---|---|
| Scheme Name | Credit Guarantee Scheme for Startups (CGSS) |
| Notification Date | Recently notified by the Government of India |
| Objective | Improve capital mobilization and provide enhanced financial support to startups |
| Increased Guarantee Cover | Rs. 10 crore to Rs. 20 crore per borrower |
| Loans up to Rs. 10 crore | 85% of the amount in default covered |
| Loans above Rs. 10 crore | 75% of the amount in default covered |
| Reduction in Guarantee Fees | Annual Guarantee Fee (AGF) reduced from 2% to 1% per annum for startups in 27 Champion Sectors |
| Champion Sectors | Identified under the 'Make in India' initiative |
| Launch Date | October 6, 2022 |
| Governing Department | Department for Promotion of Industry and Internal Trade (DPIIT) |
| Target Audience | Startups in early stages of development |
| Funding Types | Collateral-free debt funding through loans, venture debt, and working capital arrangements |
| Expected Impact | Strengthen India's startup ecosystem and contribute to innovation-driven economy |