Government will give loan of Rs 10 crore to START UPs that too guarantee free
If you are thinking of starting a startup, then there is good news for you because now you will be able to get a guarantee-free loan of up to Rs 10 crore from the government. Actually today the startup culture has increased a lot in the country and the world is leading this startup revolution. India. In 2022, the number of unicorn startups in our country has also crossed 100. In such a situation, the government is also continuously engaged in promoting businesses, and now a unique scheme has been started by the government. Due to this, it will be easy for the startup to raise funds.
In this government scheme:
What is this government scheme, you will know about it in this article? Actually, through the government’s credit guarantee scheme for startups i.e. CGSS, startup companies will now be able to get a guarantee-free loan of up to Rs 10 crore.
The department for the promotion of industry and internal trade i.e. DPIIT, which works under the Ministry of Commerce and Industry, has issued a notification of CGSS. According to this, eligible lenders will be eligible for loans sanctioned on or after October 6. Under this scheme, commercial banks will be eligible. The government will give a guarantee on loans from a non-banking finance company ie NBFC or an alternative investment fund ie AIFE.This guarantee will be given to each startup on a maximum loan of 10 crore rupees. Will give on any type of loan.
Now let’s talk about two types of government guarantee to startup companies on loans up to Rs 10 crore, the first transaction-based cover guarantee will be there. In this, the bank or NBFC will give a loan guarantee to the startup. In this, a loan guarantee will be given on the basis of a single eligible loan. In this case, the startup whose original loan will be up to Rs 3 crore. They will get transaction-based cover on 80% amount. While 3 to 5 Those with a loan amount up to Rs.10 crore will get guarantee cover at 75%. Whereas startups with loans up to Rs.10 crore will get a loan guarantee at 65%.
If understood in simple language, the government will give loan guarantee cover to startup companies with a different loan amount up to a limit on their transaction. Along with this, umbrella-based guarantee will also be available on loan under CGSS. In this, registered venture debt under AIF rules of SEBI Fund i.e. guarantee cover will be provided to VDF. Accordingly, the eligible startup companies to whom VDF will give loans, in those cases, they will get guaranteed cover on actual loss. This will be up to a maximum of Rs 10 crore in the case of each borrower.
This startup will be entitled to the government’s loan guarantee, let us also know that. A DPIIT-accredited startup. Which is earning continuously and is confirmed by the monthly audit statement of the last 12 months, of any bank or investor organization. There should not be a defaulter, whose loan is not declared NPA. Along with running this scheme, DPIIT will form a management committee and risk evaluation committee. Which will review and monitor the scheme from time to time. National credit guarantee trusty company limited This scheme So if you liked the information given in this article of ours, then do share it.
