The broad objective of CGSS is to provide guarantee upto a specified limit against credit instruments extended by MIs to finance eligible startups. This Scheme would help provide the much-needed collateral free debt funding to startups. In this regard, an eligible startup shall approach an MI and seek credit assistance under this guarantee scheme.
The MI shall examine the feasibility and viability of the project from various aspects and after ensuring feasibility and viability of the project and compliance with eligibility parameters of the scheme guidelines, sanction need based assistance to the startup as per its guidelines. Simultaneously, the MI shall apply on the portal of NCGTC and seek guarantee cover for the credit extended. Issue of guarantee cover under CGSS shall be automatic based on meeting of eligibility parameters, which has to be ensured by the MI.