CREDIT GUARANTEE SCHEME FOR STANDUP
- CGSS is aimed at providing credit guarantee and the much-needed collateral-free debt funding to start-ups.as defined in the Gazette Notification issued by DPIIT.
- MIs include financial intermediaries (banks, financial institutions, Non-Banking Financial Companies) engaged in lending/investing and conforming to the eligibility criteria approved under the Scheme.
- This scheme would help provide The exposure to individual cases would be capped at Rs. 10 crore per case or the actual outstanding credit amount, whichever is less.
- The scheme has been approved for the purpose of providing credit guarantees to loans extended by Member Institutions (MIs) to finance eligible borrowers being startups.
- CGSS does not provide guarantee cover to DPIIT recognized startups directly, but through Trustee (NCGTC) which in turn provides guarantee cover to MIs who provide loans to startups.