The annual guarantee rate for new companies in 27 champions sectors has also been reduced to 1% (per year) of 2%
The extended credit guarantee scheme for new companies (CGSS), which increases the ceiling in the guarantee coverage per borrower, will further reduce the perceived risks associated with loans to new companies in established financial institutions. This will allow greater financial flow and catwalk so that new companies undertake research and development (R&D), experimentation and creation of avant -garde innovation and technologies, according to a government statement.
The Department of Promotion of Industry and Internal Commerce (DPIIT) has notified the expansion of the CGSS, doubleing the ceiling into the guarantee coverage per borrower to ₹ 20 million rupees from ₹ 10 million rupees. “The scope of the proven guarantee coverage has also increased to 85 percent of the amount in non -compliance with the loan amount to ₹ 10 million rupees and 75 percent of the amount in breach for the amount of the loan demanding ₹ 10 million rupees,” said the statement.
The annual guarantee rate for new companies in 27 champion sectors has also been reduced to 1 percent (per year) of 2 percent. The champions sectors have been identified by the government under “doing in India” to provide an impulse to the manufacturing and service capabilities of India. “The reduction in the AGF sectors for champions will make the financing more attractive to the identified sectors and promote innovation in national manufacture and self -sufficiency,” he said.
The Indian Startup initiative was launched on January 16, 2016 to create a vibrant ecosystem for thesis entities in the country.
According to the Plan, the Government had implemented the CGSS on October 6, 2022 to provide guarantee to a specific limit against credit instruments extended to new companies by the programmed commercial banks, all the financial institutes of India and excangros and values of values and values of values and values of values and values of values (banks (banks or) alternative investment companes (AHA).
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Posted on May 9, 2025
