Open to startups registered in India

CGSSD — Credit Guarantee Scheme for Subordinate Debt

Ministry of MSME

About This Scheme

Subordinate debt with 90% CGTMSE guarantee for stressed/NPA-classified MSMEs

Provides subordinate debt (quasi-equity) to promoters of stressed / NPA-classified MSMEs to revive operations. CGTMSE provides 90% guarantee; promoter contributes 10%. Allows the promoter to infuse equity into the stressed company and restore its financial health.

Benefits

CGSSD provides promoters of stressed MSMEs access to subordinate debt that they can infuse into their companies as quasi-equity.
CGTMSE covers 90% of the credit guarantee, significantly reducing the lender's risk and making it possible for NPA-classified businesses to access funding.
The promoter contributes just 10%, and on successful revival, the MSME can return to normal banking relations.
No government equity stake is created.

How to Apply

Rolling basis

Quick Info

Amount / Funding

Varies

State / Region

Open to startups registered in India

Ministry / Dept

Ministry of MSME