Credit Guarantee Scheme for Startups (CGSS)

CGSS enables DPIIT-recognised startups to raise working capital and venture debt without pledging collateral. The National Credit Guarantee Trustee Company (NCGTC) provides the guarantee cover to banks, NBFCs and AIFs, who then lend to eligible startups. It directly tackles the collateral barrier that blocks early-stage debt access. The guarantee itself is issued by the National Credit Guarantee Trustee Company (NCGTC) to the lending institution, not to the startup, and cover has been reported to run as high as ₹10-20 crore per borrower depending on the lender category and loan type, though startups should confirm the current cap with their lender since guarantee limits are periodically revised. Startups already flagged as NPA or in default are excluded outright, which is why lenders typically run a full credit check before initiating the NCGTC guarantee request.