Central government's new scheme to encourage startups, loan will be available without pledging anything
Credit Guarantee Scheme for Startups (CGSS) The central government has decided to launch the Credit Guarantee Scheme for Startups (CGSS) scheme. Under this, startups can take loans from financial institutions without pledging anything.
Abhilasha 
The Credit Guarantee Scheme for Startups has been approved by the Central Government. After this, startups in the country will now be able to take loans from banks within a certain limit without pledging anything.
According to the notification issued by the Department for Promotion of Industry and Internal Trade (DPIIT), loans sanctioned on and after October 6 will be covered under this scheme. The Department said that the Central Government has approved the Credit Guarantee Scheme for Startups (CGSS). After this, Member Institutions (MIs) can give loans to startups under this scheme.
Startups will be helped to raise funding
Through this scheme, startup companies of the country will be helped in raising funds. Under CGSS, startups can take loans without pledging anything only after fulfilling the conditions of the scheme. Member Institutions (MIs) include Bank Financial Institutions, NBFCs and AIFs.
These conditions have to be fulfilled to take the loan
Startups will have to fulfill certain conditions to avail loan under this scheme. Your startup should be doing business at a level from where they are getting regular inflows. Statements for the last 12 months should be audited. Also, none of the earlier loans of the startup should be NPA.
Startups can take loan up to crores
It was told by DPIIT that in the CGSS scheme, any startup can take a loan up to Rs 10 crore. In this scheme, a trust or fund will be set up by the Government of India, which will act as a guarantee for the loan. This management will be done on behalf of the Board of National Credit Guarantee Trustee Company Limited.
