Indian govt exapands Credits Guarantee Scheme for Startups from Rs 10 crore to Rs 20 crore to increase capital access for startups

In a move to boost access to capital for early-stage businesses, the Government of India has expanded the Credit Guarantee Scheme for Startups (CGSS),doubling the maximum guarantee cover per borrower from Rs 10 crore to Rs 20 crore.

The Department for Promotion of Industry and Internal Trade (DPIIT),under the Ministry of Commerce and Industry, notified the changes as part of ongoing efforts to strengthen the startup ecosystem.

The revised scheme increases the extent of guarantee cover to 85% of the defaulted amount for loans up to Rs 10 crore, and 75% for loans exceeding Rs 10 crore. The changes aim to reduce the financial risk for lenders, encouraging more financial institutions to support innovation-led startups.