20 करोड़ का Guarentee कवर | CGSS Scheme for Startups

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Credit GUARANTEE SCHEME FOR STARTUPS
About ::::::::
The Credit Guarantee Scheme for Startups (CGSS) is aimed at providing credit guarantee up to a specified limit against loans extended by Member Institutions (MIs) to finance eligible borrowers viz. Startups as defined in the Gazette Notification issued by the Department for Promotion of Industry and Internal Trade (DPIIT) and amended from time to time.

Eligibility for Startups :::::::::::::::::
The eligibility criteria for an entity to borrow under the Credit Guarantee Scheme for Startups shall be as follows, wherein an entity should be:

✅Startups as recognised by DPIIT as per Gazette Notifications issued from time to time, and
✅Startups that have reached stage of stable revenue stream, as assessed from audited monthly statements over a 12 month period, amenable to debt financing, and
✅Startup not in default to any lending/investing institution and not classified as Non-Performing Asset as per RBI guidelines, and
✅Startup whose eligibility is certified by the member institution for the purpose of guarantee cover


Quantaum of Assistance ::::::::::::
The maximum amount of debt (fund based or non-fund based facilities) eligible for
guarantee cover under the scheme is Rs. 20 crore per borrower, irrespective
of the amount of debt facilities extended to the borrower by MI(s). The debt
facilities available for guarantee cover would be net of the value of collateral,
i.e., if the total debt facilities to a borrower X is Rs.15 crore against which it
has provided collateral (valued highest by the MI at Rs. 8 crore), then the
guarantee cover under the scheme shall be limited to Rs.7 crore.

Extent of Guaratee Cover :::::::::::::::::::::::::
Credit guarantee cover under this scheme would be either transaction based or umbrella based:

a) For transaction-based guarantee cover (for Banks/FIs/NBFCs) As per details given below, subject to a maximum of Rs. 10 crores per borrower:

✅To the extent of 80% of the amount in default, if the original loan sanction amount is up to Rs. 3 crore.
✅To the extent of 75% of the amount in default, if the original loan sanction amount is above Rs. 3 crore and up to Rs 5 crore.
✅To the extent of 65% of the amount in default if the original loan sanction amount is above Rs. 5 crore.
b) For umbrella-based guarantee cover (for SEBI-registered AIFs) Guarantee cover shall be of actual losses or up to 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. 10 crore per borrower (net of collateral, if any). Losses are defined as the aggregate of principal investments in written-off assets, along with three months of accrued interest from the date of default. In the case of partially written-off assets, only the principal portion written-off along with three months of accrued interest thereon from the date of default will be accounted for the loss assets.

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