Credit Guarantee Scheme for Startups (CGSS) was launched on 6th October 2022 by Department for Promotion of Industry and Internal Trade, Ministry of Commerce & Industry. Objective of the Scheme The broad objective of CGSS is to finance eligible startups, by enabling collateral free debt funding to startups through avenues such as working capital, term loans, and venture debt. Eligible institutions Scheduled Commercial Banks, All India Financial Institutions (AIFI), Non-Banking Financial Companies and Securities and Exchange Board of India (SEBI) registered Alternative Investment Funds (AIFs). Assistance under the scheme Maximum guarantee cover per borrower - Rs. 20 crore. The extent of guarantee cover provided - 85% of the amount in default for loan amount up to Rs. 10 crore and 75% of the amount in default for loan amount exceeding Rs. 10 crore. For umbrella-based guarantee cover: Actual losses or upto a maximum of 5% of pooled Investment on which cover is being taken from the fund in Startups, whichever is lower, subject to a maximum of Rs.20 crore per borrower. Source : National Credit Guarantee Trustee Company Ltd (NCGTC)