Summary:

To increase capital mobilization, the Department for Promotion of Industry and Internal Trade (DPIIT) has enhanced the Credit Guarantee Scheme for Startups (CGSS). The revised program raises the maximum guarantee cover from Rs. 10 crore to Rs. 20 crore, while increasing the guarantee cover to 85% for loans up to Rs. 10 crore. The annual guarantee fee for companies in 27 Champion Sectors has been reduced to 1%.

The expanded CGSS is expected to attract more financial institutions, boosting the flow of funds to startups while reducing lending risks. This will support R&D, innovation, and technological development. The scheme also incorporates operational changes based on feedback from the startup ecosystem, making it more attractive to both lenders and companies. These measures aim to foster a dynamic startup environment, supporting India’s progress toward becoming a developed nation.

Source: IBEF 

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