Context:
The government has revised the Credit Guarantee Scheme for Startups (CGSS).
Credit Guarantee Scheme for Startups (CGSS):
- Launched: October 6, 2022.
- Nodal Ministry: Ministry of Commerce and Industry.
- Implementing Agency: Department for Promotion of Industry and Internal Trade (DPIIT).
- Objective: To provide collateral-free debt funding to startups by offering credit guarantees against loans extended by financial institutions.
- Guarantee Cover –
- 85% for loans up to ₹10 crore.
- 75% for loans exceeding ₹10 crore.
- Maximum Guarantee Per Borrower: ₹20 crore (recently increased from ₹10 crore)
- Eligible Lending Institutions –
- Scheduled Commercial Banks.
- Non-Banking Financial Companies (NBFCs).
- SEBI-registered Venture Debt Funds (VDFs).
- Annual Guarantee Fee (AGF) – Reduced to 1% for startups in 27 Champion Sectors under Make in India (previously 2%).
Source: BS
Previous Year Question
Atal innovation mission is set up under the:
[UPSC Civil Services Exam – 2019 Prelims]
(a) Department of science of technology
(b) Ministry of labour and employment
(c) NITI Aayog
(d) Ministry of skill development and entrepreneurship
Answer: (c)