Boosting Innovation: Revised Credit Guarantee Scheme Supports Startups

The Indian government has revised the Credit Guarantee Scheme for Startups, increasing guarantee limits to support innovation and research. This initiative aims to ease perceived lending risks, offering expanded financial resources for startups. The scheme intends to foster a vibrant startup ecosystem with enhanced collateral-free debt funding.

Devdiscourse News Desk | New Delhi | Updated: 09-05-2025 14:15 IST | Created: 09-05-2025 14:15 IST

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The Indian government has unveiled a revamped Credit Guarantee Scheme for Startups, boosting the guarantee ceiling from Rs 10 crore to Rs 20 crore to further support innovation and research. The scheme targets easing lending risks, thus facilitating various financial channels for new ventures.

According to an official statement, the revised scheme aims to provide up to 85% guarantee cover for loans up to Rs 10 crore and 75% for larger loans. This initiative is positioned to encourage greater financial inflow, enabling startups to engage in research, development, and technological advancements.

The comprehensive plan, introduced as part of the Startup India initiative, seeks to build a dynamic ecosystem by offering collateral-free debt funding through multiple financial avenues. As of January, over 1.61 lakh entities have been recognized as startups, emphasizing the plan's widespread influence.

(With inputs from agencies.)