CGSSD
Credit Guarantee Scheme for Subordinate Debt
Subordinate debt for promoters of stressed MSMEs to infuse fresh capital and revive the business.
- Amount
- Up to ₹75 Lakh
- Basis
- 15% of promoter stake
- Guarantee
- 90% by scheme
- For
- Stressed MSMEs
About CGSSD
CGSSD, also called the Distressed Assets Fund, lets promoters of stressed MSMEs borrow personally from banks and infuse the money into their business as equity or quasi-equity. This improves the debt-equity ratio and liquidity of the unit.
The sub-debt is 15% of the promoter's stake (equity plus debt) or ₹75 Lakh, whichever is lower. The scheme guarantees 90% of the amount and the promoter provides the remaining 10%. Scheme windows are extended periodically, so we confirm current availability with lenders before you apply.
Key benefits
- Fresh capital to restart or stabilise operations
- 90% guarantee cover makes lenders more willing to support
- Moratorium on principal repayment for up to 7 years
- Maximum tenure of up to 10 years
- Supports units undergoing restructuring
Who is eligible
- Udyam-registered MSME
- Account classified as SMA-2 or NPA as per scheme conditions
- Unit eligible for restructuring under RBI guidelines
- Promoters willing to infuse the sub-debt into the unit
- No wilful default or fraud on record
Documents required
- Udyam registration and KYC of promoters
- Loan account statements and classification details
- Audited financials for recent years
- Restructuring or revival plan
- Promoter stake and shareholding details
How Vertex helps with CGSSD
- 1Eligibility checkWe review your business profile against the scheme rules and related state incentives.
- 2Documents & project reportWe prepare the DPR, financials and registrations such as Udyam, GST and FSSAI.
- 3Application & lender liaisonWe file the application and coordinate with banks, NBFCs and agencies.
- 4Sanction & follow-upWe follow up until sanction, disbursement and any subsidy release.
Frequently asked questions
It is sanctioned to the promoter, who then infuses the amount into the MSME as equity or quasi-equity.
Yes. Our consultants prepare the revival plan, cash-flow projections and lender presentation needed for the application.
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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