Startup

CGSS

Credit Guarantee Scheme for Startups

Collateral-free debt from banks, NBFCs and venture debt funds for DPIIT-recognised startups.

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Guarantee
Up to ₹20 Crore
Collateral
Not required
For
DPIIT startups
Run by
NCGTC
Overview

About CGSS

CGSS provides a government-backed credit guarantee on loans extended to DPIIT-recognised startups by scheduled banks, eligible NBFCs and SEBI-registered AIFs offering venture debt. This helps startups raise debt without pledging collateral.

The guarantee limit per startup was enhanced to ₹20 Crore in 2025, making the scheme useful for growth-stage startups that want to raise debt without diluting equity.

Key benefits

  • Raise debt without collateral or personal guarantees
  • Covers term loans, working capital and venture debt
  • Avoid equity dilution for growth capital
  • Access to banks, NBFCs and venture debt funds

Who is eligible

  • DPIIT-recognised startup
  • Stable revenue stream as assessed by the lender
  • Not in default and not classified as NPA
  • Loan from an eligible member lending institution

Documents required

  • DPIIT recognition certificate
  • Audited financials and MIS
  • Business plan and financial projections
  • Cap table and funding history
  • KYC of the entity and founders

How Vertex helps with CGSS

  1. 1Eligibility checkWe review your business profile against the scheme rules and related state incentives.
  2. 2Documents & project reportWe prepare the DPR, financials and registrations such as Udyam, GST and FSSAI.
  3. 3Application & lender liaisonWe file the application and coordinate with banks, NBFCs and agencies.
  4. 4Sanction & follow-upWe follow up until sanction, disbursement and any subsidy release.

Frequently asked questions

Lenders generally look for a stable revenue stream. Pre-revenue startups are usually better suited to SISFS grants or equity funding.

Yes. We prepare a lender-ready proposal and approach banks, NBFCs and venture debt funds that participate in CGSS.

Scheme limits, subsidy rates and timelines are indicative and subject to the latest government guidelines and lender policies. Vertex Certification is a private consultancy and is not affiliated with any government body.

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