CGSS lets a DPIIT-recognised startup borrow without property or a personal guarantee. The government guarantees 85% of a loan up to ₹10 crore and 75% up to ₹20 crore, for a fee of 1–2% a year. Check your cover and fee below. Free, no login.
CGSS Calculator: Startup Loan Guarantee & Fee
Enter your loan. See if your startup qualifies, how much the government guarantees, and the yearly fee. बिना गारंटी स्टार्टअप लोन: कवर और फ़ीस तुरंत देखें।
Free estimate, not an approval. CGSS (Credit Guarantee Scheme for Startups), run by NCGTC for DPIIT. Cover: 85% of the amount in default for loans up to ₹10 crore, 75% above ₹10 crore, max ₹20 crore per startup (DPIIT notification, May 2025). Annual guarantee fee: 1% for the 27 champion sectors, 1.5% for women-led and North-East startups, 2% for others (as published by Bank of Baroda). Rules verified 10 Oct 2026.
Example: ₹2 crore loan for an EV parts startup
A DPIIT-recognised startup in Pune making EV components (auto components, a champion sector) takes a ₹2 crore term loan at 12% for 5 years. CGSS guarantees 85% = ₹1.7 crore. The fee is 1% = ₹2 lakh in year 1 and about ₹6.5 lakh over 5 years as the balance falls. EMI is about ₹4.45 lakh a month. Outside a champion sector the fee would be 2% (₹4 lakh in year 1).
CGSS cover and fee at a glance
| Rule | |
|---|---|
| Who runs it | NCGTC, for DPIIT (Ministry of Commerce & Industry) |
| Loan up to ₹10 crore | 85% of the amount in default |
| Loan above ₹10 crore | 75% of the amount in default |
| Maximum per startup | ₹20 crore (fund + non-fund) |
| Fee: 27 champion sectors | 1% a year |
| Fee: women-led / North-East | 1.5% a year |
| Fee: others | 2% a year |
| Lenders | Banks, NBFCs, SEBI-registered AIFs (venture debt) |
| Not covered | Real estate projects; startups in default / NPA |
Who can apply
- A startup recognised by DPIIT.
- A stable revenue stream, shown by audited monthly statements over 12 months.
- No default with any lender or investor, and no NPA account.
- The lender (bank, NBFC or venture debt fund) certifies that you are eligible.
Documents
- DPIIT recognition certificate
- Certificate of incorporation, PAN, GST registration
- 12 months of audited monthly financial statements and bank statements
- Business plan and cash-flow projections for the loan period
- KYC of directors / partners and the cap table
How to apply
- Get DPIIT startup recognition (free) on startupindia.gov.in if you don’t have it.
- Keep 12 months of audited monthly accounts ready to show a stable revenue stream.
- Apply for a term loan, working capital or venture debt to a bank, NBFC or SEBI-registered AIF and ask for cover under CGSS.
- The lender appraises the loan, certifies your eligibility and applies to NCGTC for the guarantee.
- Pay the annual guarantee fee (usually passed on to you) so the cover stays active each year.
Official sources: ncgtc.in (NCGTC, scheme operator) and startupindia.gov.in (DPIIT recognition).
Frequently asked questions
What is CGSS? The Credit Guarantee Scheme for Startups, run by NCGTC for DPIIT. The government guarantees part of a startup loan so banks, NBFCs and venture debt funds can lend without property or personal guarantees.
How much guarantee does CGSS give? 85% of the amount in default for loans up to ₹10 crore, and 75% for loans above ₹10 crore. The maximum is ₹20 crore per startup, counting fund and non-fund limits together (raised from ₹10 crore in May 2025).
What is the CGSS guarantee fee? 1% a year for startups in the 27 champion sectors, 1.5% for women-led startups and startups in the North-East, and 2% for all others. Lenders usually pass it on to the borrower.
Who is eligible for CGSS? DPIIT-recognised startups with a stable revenue stream, shown by 12 months of audited monthly statements, that are not in default or NPA. The lender must certify eligibility. Real estate projects are not covered.
Does a pre-revenue startup get CGSS? Not on a normal loan. The scheme needs a stable revenue stream over 12 months. Pre-revenue startups usually look at the Startup India Seed Fund or equity first.
If my startup defaults, do I still have to repay? Yes. The guarantee pays the lender part of its loss. The lender can still recover the full dues from the startup, and the default goes on your credit record.
CGSS or CGTMSE: which one? If your startup is also a registered MSME (Udyam) and the loan is up to ₹10 crore, compare CGTMSE too. CGSS is open to DPIIT startups through banks, NBFCs and venture debt funds, up to ₹20 crore.
Sources: DPIIT notification amending CGSS, May 2025 (cover 85% / 75%, ₹20 crore cap, 1% fee for champion sectors), reported by Business Standard and IBEF on 9–13 May 2025; Bank of Baroda CGSS product page (fee 1% / 1.5% / 2%, eligibility, real estate exclusion); original scheme notified 6 Oct 2022. Rules verified 10 Oct 2026.
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