The Credit Guarantee Scheme for Startups (CGSS)
S.O. 4741(E).—The Central Government has approved the ‘Credit Guarantee Scheme for Startups (CGSS)’ for the purpose of providing credit guarantees to loans extended by Member Institutions (MIs) to finance eligible borrowers being Startups as defined in the Gazette Notification issued by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.
CHAPTER I
INTRODUCTION
- Title and date of commencement
i. The Scheme shall be known as the Credit Guarantee Scheme for Startups (CGSS).
ii. It shall come into force from the date of notification by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India.
iii. Loan/Debt facilities sanctioned to an eligible borrower on or after the date of notification of the scheme shall be eligible for coverage under the scheme. - Objective of the scheme
i. The broad objective of CGSS is to provide guarantee upto a specified limit against credit instruments extended by Member Institutions (MIs) to finance eligible Startups. This scheme would help provide the much-needed collateral-free debt funding to Startups.
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