Credit Guarantee Scheme for Startups (CGSS): Collateral-Free Venture Debt up to ₹10 Crores

Unlocking Collateral-Free Venture Debt via CGSS in Pune

Early-stage startups frequently face a critical financing paradox: while banks demand hard physical collateral (land, buildings, fixed deposits) to sanction commercial loans, asset-light tech startups possess intangible assets like code repositories and software platforms. To bridge this gap, the Department for Promotion of Industry and Internal Trade launched the Credit Guarantee Scheme for Startups (CGSS).

Administered by the National Credit Guarantee Trustee Company (NCGTC), CGSS provides sovereign credit guarantee coverage of up to ₹10 Crores per eligible startup for loans and venture debt disbursed by scheduled commercial banks, financial institutions, and SEBI-registered Alternative Investment Funds (AIFs). Startups in Pune can secure crucial growth capital without pledging personal assets or diluting equity. KOKJAGUAR Consultancy assists founders in structuring bankable project reports and navigating CGSS partner lenders. Discover our startup financial consulting services.

Key Features of CGSS Credit Guarantee

• Maximum Guarantee Cover: Up to ₹10 Crores per borrower enterprise.
• Extent of Guarantee: Transaction-based guarantee provides 75% to 85% credit risk cover to the lending institution.
• Eligible Entities: DPIIT-recognized startups showing positive cash flow, 12 months of audited operations, and no NPA default history.
• Debt Instruments Covered: Working capital term loans, funded debt lines, and venture debt debentures.