Parliament Question: Credit Guarantee Scheme for Startups

GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE LOK SABHA UNSTARRED QUESTION NO. 526.

TO BE ANSWERED ON TUESDAY, THE 03RD FEBRUARY, 2026.

CREDIT GUARANTEE SCHEME FOR STARTUPS

526. SHRI DHARMENDRA YADAV:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

(a) the number of startups provided credit guarantees under the Credit Guarantee Scheme for Startups (CGSS) since its inception so far alongwith the sector, year and State-wise, particularly Uttar Pradesh;

(b) the number of pending, rejected and default cases thereof, State-wise;

(c) the number of Member Lending Institutions (MLIs) empanelled under the scheme and the sanctioned loan amount, guarantee utilization rate, NPA status and delay in claim settlement in this regard, State-wise;

(d) whether the Government has identified areas, districts or social categories of entrepreneurs that are not covered by CGSS; and

(e) if so, the details thereof and if not, the reasons therefor? 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): 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.

As on 31st December 2025, 334 loans amounting to around Rs 808.18 crore have been guaranteed to startup borrowers under CGSS. The sector/industry- wise details are placed as Annexure-I. The year-wise and State/Union Territory-wise details, including for the State of Uttar Pradesh are placed as Annexure-II.

(b) & (c): 5 accounts amounting to Rs 13.08 crore have turned into Non- Performing Assets (NPA) as on 31st December 2025 under CGSS. No claim has been lodged for the same as on 31st December 2025 and hence, there has not been any delay in claim settlement. Further, with respect to the applications for loansunder CGSS by startup borrowers, the MIs are responsible for assessing the feasibility and viability of the projects and compliance with the eligibility parameters of the Scheme before sanctioning need-based assistance to the startup borrowers, hence, the data pertaining to pending and rejection of cases would be maintained at the level of MI. MIs submit details of sanctioned/approved cases while applying for guarantee cover under the Scheme on NCGTC’s portal.

36 Member Institutions (MIs) have been registered under the Scheme. The State/UT-wise and MI-wise details of the outstanding amount from accounts turning NPA as on 31st December 2025 is placed as Annexure-III.

(d) & (e): All steps under the Startup India initiative including CGSS are inclusive and implemented on a pan-India basis with certain interventions for greater penetration amongst specific sections of the society.

Specifically in CGSS, for availing guarantee cover under the Scheme, while the Annual Guarantee Fee (AGF) to be paid by MI for each borrower is 2% per annum (p.a.) of the disbursement/outstanding amount, the MI pays a lower AGF of 1.5% p.a. for units from the Northeast region as well as those of women entrepreneurs. Further, to support startups in manufacturing, the AGF for lenders supporting startups in 27 Champion Sectors has also been reduced to 1% per annum from 2% p.a.

Further, the Startup Common Application Journey has been launched on the Jan Samarth Portal providing a single digital platform for startups from across the country to apply for loans and track their applications seamlessly through a unified digital journey.

********ANNEXURE-I ANNEXURE REFERRED TO IN REPLY TO PART (a) OF THE LOK SABHA UNSTARRED QUESTION NO. 526 FOR ANSWER ON 03.02.2026.

The sector/industry-wise details of loans guaranteed for startup borrowers as on 31st December 2025 are provided below:

Number of Loans Amount of loans guaranteed Sector/Industry Guaranteed (in Rs. crore) Aerospace & Defense 14 68.300 Agri & Allied Activities 13 38.700 Animal Feed 1 0.500 Auto Components 7 26.200 Automobiles 10 20.750 Beverages 2 2.500 Cement And Cement 4 19.350 Products Chemicals And 4 12.350 Petrochemicals Commercial Services & 13 36.980 Supplies Construction 7 32.850 Consumer Durables 14 17.195 Diversified 9 27.130 Diversified FMCG 2 15.000 Diversified Metals 2 4.500 Electrical Equipment 9 24.375 Electronic system design 1 1.000 and manufacturing Engineering Services 2 2.060 Entertainment 1 0.150 Ferrous Metals 3 6.350 Fertilizers And 2 3.500 Agrochemicals Finance 1 2.000 Financial Technology 1 4.000

(Fintech) Food & Other Products 21 35.256 Food processing 1 4.000 Gas 1 0.200 Healthcare Equipment & 5 9.250 Supplies Healthcare Services 2 1.250 Household Products 1 1.000 Industrial Manufacturing 8 3.611 Industrial Products 10 27.828 IT - Hardware 5 8.570IT - Services 15 29.048 IT - Software 23 52.105 Leisure Services 7 20.400 Media 2 1.700 Metals & Minerals Trading 2 1.950 Minerals & Mining 2 8.000 New and Renewable 2 23.750 energy Non - Ferrous Metals 2 3.500 Other Construction 9 13.730 Materials Other Consumer Services 14 20.500 Other Utilities 9 9.750 Paper, Forest & Jute 1 5.000 Products Personal Products 4 5.450 Petroleum Products 3 5.700 Pharmaceuticals & 6 6.230 Biotechnology Power 11 38.380 Realty 3 3.470 Retailing 3 7.500 Telecom - Equipment & 3 8.500 Accessories Textiles & Apparels 26 55.214 Transport Services 11 31.600 Total 334 808.18 ********ANNEXURE-II ANNEXURE REFERRED TO IN REPLY TO PART (a) OF THE LOK SABHA UNSTARRED QUESTION NO. 526 FOR ANSWER ON 03.02.2026.

The year and State/UT-wise details of loans guaranteed for startup borrowers as on 31st December 2025 are provided below:

State/UT No. of loans guaranteed Amount of loans Guaranteed (in Rs. crore) 2023 2024 2025 2023 2024 2025 Andhra 3 7 1 5.30 9.70 2.00 Pradesh Assam 0 4 1 0.00 2.52 11.45 Bihar 0 1 0 0.00 0.28 0.00 Chandigarh 0 1 0 0.00 0.15 0.00 Chhattisgarh 0 0 2 0.00 0.00 0.65 Delhi 8 14 3 25.65 25.96 3.80 Gujarat 2 2 5 6.50 3.00 30.27 Haryana 12 17 7 25.25 58.17 37.27 Jammu and 2 3 1 10.00 4.35 5.00 Kashmir Karnataka 15 14 15 30.16 37.18 29.18 Kerala 2 12 1 4.50 24.50 3.00 Madhya 4 1 1 8.80 1.00 1.00 Pradesh Maharashtra 19 38 18 59.75 64.99 45.53 Odisha 0 0 2 0.00 0.00 4.50 Rajasthan 4 5 1 11.80 20.50 0.60 Tamil Nadu 5 21 6 8.65 62.00 13.95 Telangana 1 4 0 0.30 5.17 0.00 Uttar 6 14 10 18.12 20.86 13.13 Pradesh Uttarakhand 0 1 0 0.00 10.00 0.00 West Bengal 2 13 3 6 30.75 5 Total 85 172 77 220.78 381.08 206.33 *******ANNEXURE-III ANNEXURE REFERRED TO IN REPLY TO PARTS (b) & (c) OF THE LOK SABHA QUESTION NO. 526 FOR ANSWER ON 03.02.2026.

The State/UT-wise details of the outstanding amount from accounts turning into Non- Performing Assets (NPA) as on 31st December 2025 are provided below:

State/UT No. of loans Outstanding amount Member Institutions (Rs. crore) (MIs) which have

provided the loans Delhi 1 1.18 HDFC Bank Haryana 1 4.05 HDFC Bank Maharashtra 2 7.46 HDFC Bank, Bank of India Uttar Pradesh 1 0.39 HDFC Bank Total 5 13.08 *********