Credit Guarantee Scheme for Startups Apply Online & Application Form | CGSS Check Loan Amount & Guarantee Fees | Credit Guarantee Scheme for Startups Check Features & Benefits | CGSS Check Eligible Lending Institutions & Delegated Bodies | Credit Guarantee Scheme for Startups Check Eligibility & All Details |
The Department for Promotion of Industry and Internal Trade has launched the Credit Guarantee Scheme for Startups so that the applicants will be able to start up their new business ventures or businesses after getting a loan provided to them. This loan will be provided by the Member Institutions (MIs) such as Scheduled Commercial Banks, Non-Banking Financial Companies, and Securities and Exchange Board of India (SEBI) registered Alternative Investment Funds (AIFs).
Today through this article we will provide you with all types of information about the Credit Guarantee Scheme for Startups 2023 like purpose, Eligibility Criteria, Benefits, Features, and important documents, etc. Apart from this, we will share with you the process to apply online for this scheme. To get complete information about this scheme, read this article till the end.
Credit Guarantee Scheme for Startups
Now the applicants or eligible borrowers will be able to start up or initiate the process of starting their own business ventures after getting an online registration offered under the Credit Guarantee Scheme for Startups. An amount of Rs. 10 crores can be availed by a single individual or borrower for getting their business established. The applicants will be advised to apply online before the last date.
With the active participation or association of the Department for Promotion of Industry and Internal Trade (DPIIT), the Ministry of Commerce and Industry Credit Guarantee Scheme for Startups has been launched so that lending institutions such as SEBI, AIFs, and Scheduled Commercial Banks will be able to lend loans to the eligible borrowers.
Highlights Of Credit Guarantee Scheme for Startups 2023
The highlights of this scheme are as follows:-
| Name Of The Scheme | Credit Guarantee Scheme for Startups |
| Launched By | Department for Promotion of Industry and Internal Trade (DPIIT), the Ministry of Commerce and Industry |
| Allotted Portal | ncgtc Portal |
| Delegated Ministries | Ministry of Electronics & Information Technology Ministry of Commerce and Industry |
| No of Delegated Ministries | 2 |
| Objective | To provide loans to the borrowers to start up business ventures |
| Benefit | This will increase employment rates |
| Applicable To | Citizens of India |
| Beneficiaries | Borrowers |
| Mode Of Transfer | DBT (Direct Benefit Transfer) |
| Payment Mechanism | e-payment mechanism |
| Form of Benefit | Loan amount |
| Incentive Transferral | Yearly/ Monthly/ One Time Basis |
| Amount of benefit | Rs. 3 Crores to Rs. 10 Crores |
| Guarantee Fees | 0.75% to 0.85% |
| Loan Duration | 5 Years |
| Hosting Site | National Information Center (NIC) |
| Last Date To Apply Online | Will be updated soon |
| Mode Of Application | Online |
| Office Address | Central Public Information Officer (CPIO) under RTI Swavalamban Bhavan,C-11, G-Block, Bandra Kurla Complex, Bandra (East), Mumbai 400051 |
| Phone No | 022-67221413 |
| Email ID | [email protected] |
| Official Website | www.ncgtc.in/en |
Objectives Of Credit Guarantee Scheme for Startups
The major objective of launching the Credit Guarantee Scheme for Startups is to provide or lend loans to eligible borrowers so that they will be able to initiate the movement of starting their own businesses with the help of loans provided to them. The applicants will be able to start up their own businesses without facing any financial issues.
Another objective of launching the Credit Guarantee Scheme for Startups is to grant loan amounts ranging from Rs. 5 Crores to Rs. 10 Crores to applicants so that they will be enabled the establishment of their start-ups. This will bring growth of new enterprises being formed and will also increase the growth of our nation.
Delegated Bodies
The list of delegated bodies are as follows:-
- Scheduled Commercial Banks
- Non-Banking Financial Companies and the Securities and Exchange Board of India (SEBI)
- Member Institutions
- Management Committee (MC)
- Risk Evaluation Committee (REC)
- National Credit Guarantee Trustee Company Limited (NCGTC)
Eligible Lending Institutions
The list of eligible lending institutions are as follows:-
- Small Industries Development Bank of India (SIDBI)
- Delhi Financial Corporation
- North Eastern Development Finance Corporation (NEDFI)
- Kerala Financial Corporation
- National Small Industries Corporation (NSIC)
- Jammu & Kashmir Development Finance Corporation Ltd
- Tamil Nadu Industrial Investment Corporation Ltd.
- Export Import Bank of India
- Andhra Pradesh State Financial Corporation
CGSS Loan Amount Limit
The limit of loan amount under this scheme are as follows:-
| Loan Amount Limit | Actual Loan Amount |
| 80% of the amount | Rs. 3 Crores or Above |
| 75% of the amount | Rs. 3 Crores to Rs. 5 Crores |
| 65% of the amount | Rs. 5 Crores to Rs. 10 Crores |
CGSS Guarantee Fee
The guarantee fee charged are as follows:-
| Loan Amount Limit | Guarantee Fees |
| Rs.5 lakh and Above | 0.75% |
| Rs.5 lakhs to Rs. 10 Lakhs | 0.85% |
Credit Guarantee Scheme for Startups Duration
The applicants or eligible borrowers who are going to get loans provided by the lending institutions will provide them loans on the basis of the duration that has been fixed by the selection body or the government. The applicants will be able to carry out loan amounts for a maximum duration of 5 years.
Some Other Related Programmes
Some other related programmes are as follows:-
- National Initiative for Developing and Harnessing Innovations (NIDHI)
- Startup India Action Plan (SIAP)
- Ranking of States on Support to Startup Ecosystems (RSSSE)
- Fund of Funds for Startups (FFS)
Benefits Of Credit Guarantee Scheme for Startups
The benefits of this scheme are as follows:-
- The applicants will be able to start their own business ventures.
- This will increase the employment rate in India country.
- India will be able to increase its production and growth in terms of enterprises.
- The maximum duration on the basis of which the applicants can borrow the loan amount will be 5 years.
- One can apply online before the last date for getting timely registration.
- There will be a generation of employment opportunities.
Features Of Credit Guarantee Scheme for Startups
The features of this scheme are as follows:-
- With the active participation or association of the Department for Promotion of Industry and Internal Trade (DPIIT), the Ministry of Commerce and Industry Credit Guarantee Scheme for Startups has been launched.
- This will provide loans to the borrowers to build their own new business ventures or enterprises.
- The maximum loan amount can be Rs. 10 Crores which can be undertaken by the borrower.
- Guarantee Fee will also be charged on the basis of the loan amount borrowed by the applicant.
- The duration of this loan period will be 5 years.
- For getting more information, one can visit the official website.
Credit Guarantee Scheme for Startups Eligibility Criteria
The applicants will need to follow the below-mentioned points to apply online for CGSS:-
- He or she must be a citizen of India.
- The applicant must be wanting to undertake loans for their business start-up.
Important Documents
Some of the important documents to apply online under this scheme:-
- Identity Proof
- Address Proof (Passport/Voter ID Card/Driving License/Aadhaar Card)
- Bank statement of previous 3 months
- Two latest salary slips/current dated salary certificate with the latest Form 16
Process To Apply Online Under Credit Guarantee Scheme for Startups
As this scheme has been recently launched no such information has been released with the help of various social networking sites regarding the application procedure to apply online for the Credit Guarantee Scheme for Startups. Whenever the application procedure will be launched, we will update you through this article otherwise the applicant can visit the Official Website.
To Do Login
The applicants will need to follow the below-mentioned points to do login:-
- Visit the official website first.
- There are various links to log in will get appeared such as:-
- Click on anyone’s link as per your choice.
- The relevant page will get displayed on your screen.
- Fill it in with the required details.
Getting Contact Details
The applicants will need to follow the below-mentioned points to get contact details:-
- Visit the official website first.
- On the homepage, click on the drop-down menu placed above.
- Now click on the Contact Us option.
- The contact details will get displayed on your screen.
Contact Information
In case any queries and questions come to your mind regarding the Credit Guarantee Scheme for Startups, then you may contact this mentioned office address, phone no, and email ID:-
- Office Address:-
- Central Public Information Officer (CPIO) under RTI
- Swavalamban Bhavan,C-11, G-Block,
- Bandra Kurla Complex, Bandra (East), Mumbai 400051
- Phone No:- 022-67221413
- Email ID:- [email protected]