The CGSS Scheme (Credit Guarantee Scheme for Startups) is a game-changing initiative by the Department for Promotion of Industry and Internal Trade (DPIIT).
It aims to support the ecosystem of startup funding in India by providing high-value, collateral-free loans. Managed by the National Credit Guarantee Trustee Company (NCGTC), this scheme enables startups to avail of financial assistance without the need for personal assets or third-party guarantees.
For many founders exploring how to raise funds for a startup in India, the CGSS scheme offers a way to secure debt capital that was previously only available to established corporations.
In this comprehensive blog, we will explore the CGSS scheme details, including:
- What is the CGSS Scheme?
- CGSS scheme eligibility criteria for applying
- Focus areas of the CGSS scheme
- Benefits of CGSS for startups
- Documents required for CGSS loan applications
- How to complete your CGSS loan application
What is the CGSS Scheme?
The CGSS Scheme (Credit Guarantee Scheme for Startups) is a government-backed initiative that offers collateral-free loans to recognized startups. Under this scheme, the government acts as a guarantor for a significant portion of the loan amount.
This reduces the risk for lenders—including banks and NBFCs—making them more willing to provide large-scale capital to young companies.
The CGSS for startups focuses on empowering businesses across various sectors by offering what is essentially a specialized without security business loan. The CGSS loan can go up to ₹20 crore, making it one of the most substantial debt-based financial schemes available for entrepreneurs today.
Collateral-free
No need to pledge land, property, or inventory.
High Loan Limits
Funding available up to ₹20 crore.
Guarantee Coverage
85% guarantee on loans up to ₹10 crore and 75% for loans between ₹10 crore and ₹20 crore.
Is your startup ready to grow but need funding without collateral?
Apply for the CGSS Scheme and get up to ₹20 Crore in financial support to scale your operations!
Eligibility Criteria for the CGSS Scheme
To access a CGSS loan, your business must satisfy strict CGSS scheme eligibility parameters. This ensures the capital is directed toward innovative and scalable ventures.
DPIIT Recognition
Must have a valid DPIIT Startup Recognition Certificate.
Startup Age
The company must be less than 10 years old from the date of incorporation.
Revenue Limit
Annual turnover must not have exceeded ₹100 crore in any previous financial year.
Innovation Factor
Must be working on technology-driven, innovative, or scalable business models.
Credit Standing
The startup must not be a defaulter with any bank or financial institution.
If your startup is in the growth stage, DPIIT-recognized, and working on innovative solutions
apply for the CGSS Loan to unlock up to ₹20 crore in collateral-free funding!
Focus Areas of the CGSS Scheme
While the CGSS scheme is inclusive, it provides a tailored push for certain "Champion Sectors." You can find more CGSS scheme details regarding industry priorities below:
Technology & Innovation
Cutting-edge domains such as AI, Blockchain, and IoT. Startups here may also benefit from the MeitY Genesis EIR 2 program.
Agri-tech & Clean-tech
Sustainable agriculture and resource management solutions, often overlapping with the agri-sure fund and RKVY RAFTAAR scheme.
Healthcare & Biotech
Innovations in medical technology and pharmaceuticals (See our startup health program guide).
Renewable Energy
Solar, wind, and sustainable power generation.
Manufacturing
Small and medium-scale units looking to adopt ISO certifications and modern production techniques.
Is your startup working on technology, healthcare, or renewable energy solutions?
Apply now for the CGSS Scheme and unlock up to ₹20 crore in funding to scale your business!
Benefits of the CGSS Scheme
The CGSS scheme for startups offers advantages that far outweigh traditional bank loans or even mudra loan scheme or CGTMSE loan scheme limits.
Large-Scale Debt
Up to ₹20 crore in funding—significantly higher than mudra loan scheme limits.
NCGTC Guarantee
High guarantee percentages (75%-85%) significantly lower the barrier for bank approvals.
No Equity Dilution
Unlike venture tech funding, a CGSS loan allows you to keep 100% of your ownership while scaling.
Growth Support
Capital can be used for working capital, product scaling, or entering new markets.
Mentorship
Borrowers often gain access to the MSME growth advisory session ecosystem.
Looking for equity-free funding to grow your startup?
Apply for the CGSS Scheme and get up to ₹20 Crore in collateral-free loans!
Documents Required for the CGSS Loan Application
Preparing your application correctly is vital. Here are the essential Documents required for CGSS scheme submission:
DPIIT Recognition Certificate
Proof of being a recognized startup.
Incorporation Documents
Certificate of Incorporation, MoA, and AoA.
Professional Pitch Deck
Outlining your problem statement, solution, and roadmap.
Audited Financials
Balance sheets and P&L statements for at least the previous financial year.
Detailed Project Report (DPR)
A 3-5 year growth strategy and financial forecast.
Founder KYC
Aadhaar, PAN, and address proof of all directors/partners.
Get your documents ready and apply for the CGSS Loan Scheme today!
Unlock the funding your startup needs to scale up!
How to Apply for the CGSS Loan Scheme
Following the correct CGSS scheme details during the application will increase your sanction chances:
Step 1: Prepare Your Documents
Step 2: Submit Your Application
Step 3: Evaluation & Review
Step 4: Interview & Selection
Step 5: Loan Disbursement
Ready to get collateral-free loans for your startup?
Apply now for the CGSS Loan Scheme and get up to ₹20 Crore!
Is There a Deadline for Applying to the CGSS Loan Scheme?
The CGSS scheme for startups is a permanent government initiative and operates on a rolling basis. There is no fixed deadline; however, banks have their own internal quarterly targets for disbursing CGSS loans.
To learn more about how government grants work and how they pair with credit guarantees, stay updated with our blog.
FAQs: CGSS Loan Scheme
What is the CGSS Loan Scheme?
It is a credit guarantee program where the government guarantees loans up to ₹20 crore for startups, allowing them to borrow without collateral.
What are the CGSS scheme details regarding the guarantee cover?
The scheme provides an 85% guarantee for loans up to ₹10 crore and a 75% guarantee for loans between ₹10 crore and ₹20 crore.
Who is eligible for the CGSS scheme eligibility?
DPIIT-recognized startups that are less than 10 years old with a turnover of less than ₹100 crore and have no history of default.
What are the Documents required for CGSS scheme?
DPIIT certificate, MSME certificate, Audited Financials, Pitch Deck, Detailed Project Report, and KYC of founders.
How is this different from the CGTMSE loan?
While both are collateral-free, the CGTMSE loan scheme is for all MSMEs up to ₹5 crore, whereas the CGSS loan is specifically for recognized startups up to ₹20 crore.
Conclusion: Why Apply for the CGSS Loan Scheme?
The CGSS scheme is arguably the most powerful debt instrument for Indian startups. By providing up to ₹20 crore in collateral-free funding with NCGTC backing, it removes the biggest hurdle to scaling: the lack of physical assets. Whether you are in Fintech, Biotech, or Manufacturing, the CGSS for startups provides the financial runway needed to become a market leader.
To ensure your application is bank-ready and to avoid common rejection reasons, read the truth about Enego services and how we assist entrepreneurs in securing high-value funding.
Ready to access high-value collateral-free funding for your startup?
Apply for the CGSS Scheme and get up to ₹20 Crore to scale your operations!