Credit Guarantee Scheme for Startups 2026: Collateral-Free Loan Cover up to ₹20 Crore

At a glance

About the scheme

Notified by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry, the Credit Guarantee Scheme for Startups provides credit guarantee cover to eligible financial institutions lending to DPIIT-recognised startups. Administered through the National Credit Guarantee Trustee Company (NCGTC), the scheme covers a wide range of debt facilities such as venture debt, working capital, subordinated debt, and debentures. By reducing risk for commercial banks, NBFCs, and alternative investment funds, the initiative encourages formal lenders to offer collateral-free credit to early-stage and growing ventures.

Benefits

• Provides collateral-free debt funding to eligible DPIIT-recognised startups through government-backed guarantee cover.
• Offers up to 85% guarantee coverage of the default amount for credit facilities up to ₹10 crore.
• Offers 75% guarantee coverage of the default amount for credit facilities above ₹10 crore, up to ₹20 crore per borrower.
• Covers diverse credit facilities including working capital, venture debt, subordinated/mezzanine debt, debentures, and other fund and non-fund-based instruments.
• Provides concessional Annual Guarantee Fee and Annual Commitment Charge rates for women-led startups, North-East units, and 27 identified Champion Sectors.
• Supports both transaction-based and umbrella-based guarantee structures for individual loans as well as pooled portfolios.
• Provides unconditional and irrevocable credit guarantee cover to improve lender confidence.
• Permits restructuring and enhancement of covered facilities while retaining guarantee protection within scheme limits.

Who can apply (eligibility)

• The applicant entity must be recognised as a startup by DPIIT as per applicable Gazette Notifications.
• The applicant must not be in default to any lending or investing institution.
• The startup must not be classified as a Non-Performing Asset (NPA) under Reserve Bank of India guidelines.
• Eligibility must be certified by the concerned Member Institution extending the credit facility.
• The entity must be actively engaged in eligible startup business activities as per its DPIIT recognition.

Who cannot apply

• Startups that are in default to any lending or investing institution are not eligible.
• Entities classified as Non-Performing Assets (NPAs) under RBI guidelines are excluded.
• Businesses not recognised as startups by DPIIT are not covered under this scheme.

Documents required

• DPIIT Recognition Certificate
• Certificate of Incorporation or Registration
• Permanent Account Number (PAN) Card of the startup
• KYC documents of promoters and directors

How to apply

1. 1Visit the official JanSamarth portal at https://www.jansamarth.in to access the unified credit platform.
2. 2Register as a new user with your mobile number and OTP, then log in to the dashboard.
3. 3Select the Check Eligibility option and provide your business details, PAN, Udyam number, and DPIIT recognition number.
4. 4Proceed to the Startup Common Application and fill in operational, financial, and GSTIN details.
5. 5Upload the required documents including your incorporation certificate, DPIIT certificate, and business financials.
6. 6Specify the required loan amount, facility purpose, and desired repayment tenure.
7. 7Review available bank options matched by the portal and select your preferred lending bank and branch.
8. 8Receive digital in-principle approval from the bank and complete offline due diligence at the branch before final disbursement and CGSS guarantee enrolment.

Frequently asked questions