Expansion of the Credit Guarantee Scheme for Startups

On 9th May 2025, the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, notified the expansion of the Credit Guarantee Scheme for Startups (CGSS) to enhance capital access and boost innovation-driven entrepreneurship.

Key Features of the Expanded CGSS

  • Increased Guarantee Cover Limit: Maximum guarantee per borrower raised from Rs. 10 crore to Rs. 20 crore.
  • Higher Guarantee Coverage Rates:
    • Loans up to Rs.10 crore: 85% guarantee coverage (previously lower).
    • Loans above Rs.10 crore: 75% guarantee coverage.
  • Reduced Annual Guarantee Fee (AGF): For startups in 27 Champion Sectors under ‘Make in India’, AGF reduced from 2% to ....
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