Govt Doubles CGSS Loan Guarantee Limit for Startups, Cuts AG Fees for Champion Sector

The government has doubled the loan guarantee limit under the Credit Guarantee Scheme for Startups (CGSS) from ₹2 crore to ₹5 crore to boost funding access for early-stage ventures. Simultaneously, it reduced assurance guarantee fees by 50% for champion sectors like renewable energy and semiconductors. These measures aim to address startup financing challenges while promoting strategic industries. The revised scheme also extends the guarantee coverage period and simplifies claim settlement procedures. Startups registered with DPIIT can now avail collateral-free loans more easily, with banks receiving enhanced protection against defaults. The changes reflect the government's focus on making India's startup ecosystem more resilient and globally competitive.