India, May 9 -- The government has approved a revised Credit Guarantee Scheme for Startups (CGSS), doubling the maximum guarantee cover per borrower to INR 20 Cr from INR 10 Cr.

The Department for Promotion of Industry and Internal Trade (DPIIT) said that this notification supersedes the earlier notification dated October 6, 2022 on the scheme and comes into effect from May 8.

The scheme aims at improving access to collateral-free debt funding to startups via banks, NBFCs, AIFs and other registered financial entities.

The extent of guarantee cover provided has also been increased up to 85% of the amount in default for loan amount up to INR 10 Cr and 75% of the amount in default for the loan amount exceeding INR 10 Cr.

Further, the ann...