Government Doubles Credit Guarantee for Startups to Boost Innovation

The government has announced a substantial revision to the Credit Guarantee Scheme for Startups (CGSS), enhancing the maximum guarantee cover for each borrower to Rs 20 crore.

This initiative seeks to provide collateral-free debt funding to eligible startups, as outlined by the department for promotion of industry and internal trade (DPIIT) in the latest notification.

The revised scheme is designed to stimulate entrepreneurship by increasing credit support for innovators and has adjusted guarantee covers to up to 85% for loans amounting to Rs 10 crore and 75% for amounts exceeding Rs 10 crore.

(With inputs from agencies.)