Overview
Guarantee cover on loans given by banks, NBFCs and venture debt funds to DPIIT-recognised startups, so founders can borrow without collateral.
Why it matters for founders
Use this scheme together with other Startup India and MSME benefits. Our community experts can help you prepare documents and a strong application.
Key benefits
Transaction-based and umbrella guarantee cover for startup loans
Covers term loans, working capital and venture debt
Limits per borrower are notified by the government — check the official site
Eligibility
- DPIIT-recognised startup
- Stable revenue stream (audited monthly statements for 12 months) and not in default
- Loan from a member institution registered with NCGTC
Who should apply
- Early-stage founders who meet the eligibility above and have their documents ready
- Businesses that need this type of support (grant, loan or subsidy) in the next 6–12 months
- Applicants who can show a clear plan for how the money or benefit will be used
How to apply
- 1
Approach a member bank, NBFC or venture debt fund
- 2
The lender sanctions the loan on merit and applies to NCGTC for guarantee cover
Documents checklist
0 of 3 readyTick each document as you collect it — your ticks are saved on this device.
Common mistakes to avoid
- Applying before checking every eligibility condition
- Uploading unclear, unsigned or expired documents
- Using different business names or addresses across documents
- Paying agents who promise guaranteed approval — government applications are free
- Missing the deadline or not tracking the application status
Frequently asked questions
Who can apply for Credit Guarantee Scheme for Startups?
Where do I apply?
Is the information on this page official?
Similar schemes
Credit Guarantee Fund Trust for Micro and Small Enterprises
Guarantee cover to banks so micro and small enterprises can get term loans and working capital without collateral or third-party guarantee.
Pradhan Mantri Mudra Yojana
Collateral-free loans for non-farm micro and small enterprises through banks, NBFCs and MFIs under the Shishu, Kishore, Tarun and Tarun Plus categories.
Prime Minister's Employment Generation Programme
Credit-linked subsidy for setting up new micro-enterprises in manufacturing and service sectors, with higher subsidy for special categories and rural areas.
Tax Exemption for Startups (Section 80-IAC)
Eligible DPIIT-recognised startups can claim a deduction of 100% of profits for any 3 consecutive years out of their first 10 years.
