Credit Guarantee Scheme for Startups

What it is

Facilitate collateral-free debt funding for eligible startups by providing guarantee cover to eligible lending or investing institutions.

What you get

• Transaction-based credit guarantee cover

Who it is for

• the startup must be recognized by DPIIT as per Gazette notifications issued from time to time
• the startup must not be in default to a lending or investing institution
• the startup must not be classified as an NPA under applicable RBI guidance
• eligibility must be certified by the Member Institution for guarantee cover

Not eligible if

• the guarantee is not direct cash to the startup
• the trustee does not receive a direct borrower application for guarantee cover
• lender appraisal, facility sanction, fees, claims and guarantee conditions remain separate requirements

How to apply

1. 1
   Confirm DPIIT and credit eligibility

   Verify DPIIT recognition, default/NPA status, proposed debt instrument and whether the intended lender or fund is an eligible Member Institution.

   Official step
2. 2
   Prepare the lender proposal

   Prepare the business, facility, financial and recognition documents required for Member Institution appraisal.

   Official step
3. 3
   Apply through Jan Samarth or a Member Institution

   Submit through the current official startup route or approach a Member Institution directly; the institution evaluates and sanctions the facility.

   Official step
4. 4
   Track guarantee-cover filing

   The Member Institution applies to the trustee for guarantee cover after satisfying scheme eligibility and facility conditions; retain sanction and guarantee evidence.

   Official step

Keep ready