Government Doubles Credit Guarantee for Startups

• The government has increased the maximum guarantee cover under the Startup Credit Guarantee Scheme to INR 20 Cr, up from INR 10 Cr.
• Loans under this scheme now have up to 85% guarantee, enhancing startups' access to collateral-free debt funding.
• The revised scheme is applicable from May 8, superseding the earlier version from October 2022.
• Funding options are available via banks, NBFCs, AIFs, and other registered financial entities.
• This move aims to boost startup growth by facilitating easier access to necessary financial resources.

Source: Inc42