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GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE
LOK SABHA
UNSTARRED QUESTION NO. 1586.
TO BE ANSWERED ON TUESDAY, THE 28TH JULY, 2026.
CREDIT GUARANTEE SCHEME FOR STARTUPS
1586. DR. AMOL RAMSING KOLHE:
Will the Minister of COMMERCE AND INDUSTRY be pleased to state:
वाणिज्य एवं उद्योग मंत्री
(a) whether Government has reviewed the implementation of the Credit Guarantee
Scheme for Startups (CGSS) in Maharashtra, particularly in Pune, and if so, the
details thereof;
(b) the number of Department for Promotion of Industry and Internal Trade (DPIIT)
recognized start-ups in Maharashtra that have availed collateral-free credit
under the Scheme during the last three years and the current year, along with
amount of guarantee cover provided in Maharashtra, district-wise including
Pune;
(c) whether Government has assessed the reasons for the relatively low uptake of
CGSS among eligible startups in Pune, despite its large innovation and
technology ecosystem, if so, the details thereof;
(d) whether any review has been undertaken regarding the participation of banks
and member institutions in extending credit under the Scheme in Maharashtra,
district-wise including Pune; and
(e) the measures taken by the Government to improve awareness, simplify
procedures and enhance credit flow to DPIIT-recognized startups in Pune and
other parts of Maharashtra?
ANSWER
वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री (श्री णिणिन प्रसाद)
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY
(SHRI JITIN PRASADA)
(a) to (c): The Credit Guarantee Scheme for Startups (CGSS) is implemented for
enabling debt funding to startups through eligible financial institutions [Member
Institutions (MIs)]. CGSS is operationalized by the National Credit Guarantee
Trustee Company (NCGTC) Limited and has been operationalized from 1st
April 2023. The CGSS is implemented across the country, including in the State
of Maharashtra.Specifically in the State of Maharashtra, 118 loans amounting to around Rs
326.07 crore have been guaranteed to startup borrowers under CGSS during
the last three years and the current year viz. 2023, 2024, 2025, and 2026 as on
30th June 2026. Particularly in the district of Pune, 61 loans amounting to
around Rs 149.87 crore have been guaranteed to startup borrowers under
CGSS. The district-wise details for the State of Maharashtra are placed at
Annexure-I.
The Management Committee (MC) constituted under the Scheme is
responsible for reviewing, supervising and monitoring the functioning of the
Scheme and is empowered to appraise its performance. Further, the MIs
evaluate credit proposals based on prudent banking judgement and undertake
due diligence while sanctioning and monitoring loans in accordance with the
operational guidelines of the Scheme. The Scheme guidelines are available
online:
https://www.ncgtc.in//content/products/0/20250509/Gazette_Notification_CGSS
_8th _May_2025_44e1a2d0dc.pdf
(d) to (e): The Department for Promotion of Industry and Internal Trade (DPIIT) and
NCGTC engage with startups and Member Institutions (MIs) to review the
implementation of the Scheme, address operational issues, discuss progress
and facilitate greater participation of lenders and uptake of the Scheme. In
addition, the Management Committee also reviews the functioning and
performance of the Scheme.
Based on stakeholder discussions and feedback, the Government expanded
the Credit Guarantee Scheme for Startups (CGSS) vide notification dated 8th
May 2025 by increasing the ceiling on guarantee cover per borrower from Rs.
10 crore to Rs. 20 crore, enhancing guarantee coverage to 85% of the amount
in default for loans up to Rs. 10 crore and 75% for loans above Rs. 10 crore, as
well as reducing the Annual Guarantee Fee (AGF) to 1% for lenders supporting
startups in 27 Champion Sectors, and introducing operational reforms for wider
coverage of eligible startups.
The Government has also undertaken several measures to improve
awareness, simplify access and enhance credit flow to startups across the
country, including in the State of Maharashtra:
i. Launch of the Startup Common Application Journey on the Jan Samarth
Portal, providing a unified digital platform for startups to apply for loans
and track their application.
ii. Organization of awareness and outreach programmes by DPIIT in
collaboration with NCGTC across various cities, including Mumbai,
bringing together startups and MIs to improve awareness and facilitate
access to credit
iii. Regular interactions with the leadership of MIs to address implementation
issues, review progress and facilitate improved credit flow under the
Scheme.As a result of such initiatives, the number and value of guarantees under the
Scheme have witnessed notable growth. As on 30th June 2026, 478 loans
amounting to approximately Rs. 1,469.92 crore have been guaranteed under
the Scheme, of which more than Rs. 660 crore has been guaranteed during
2026 (up to 30th June 2026).
*********ANNEXURE-I
ANNEXURE REFERRED TO IN REPLY TO PARTS (a) to (c) OF THE LOK
SABHA UNSTARRED QUESTION NO. 1586 FOR ANSWER ON 28.07.2026.
The district-wise details of loans guaranteed for startup borrowers in the State of
Maharashtra as on 30th June 2026 are provided below:
S. No. District Number of loans Amount of loans guaranteed
guaranteed (in Rs. crore)
1. Ahilyanagar 2 6.500
2. Akola 4 2.600
3. Kolhapur 2 0.975
4. Mumbai 20 74.556
5. Mumbai 8 28.200
Suburban
6. Nashik 5 7.430
7. Palghar 1 5.000
8. Pune 61 149.871
9. Raigad 2 8.000
10. Sangli 1 1.210
11. Thane 11 41.329
12. Yavatmal 1 0.400
Total 118 326.07
********