Credit Guarantee Scheme for Startups (CGSS)

Question 1

government notifies the expansion of the Credit Guarantee Scheme for Startups (CGSS) to ______

Answer 1

increase capital mobilization for startups

Question 2

modified scheme to boost ______ and ______

Answer 2

• startup credit
• innovation with enhanced guarantee cover

Question 3

this scheme is associated with which department and ministry of the government

Answer 3

Department for Promotion of Industry and Internal Trade (DPIIT),

Ministry of Commerce and Industry

Question 4

the expansion of the CGSS which increases the ceiling on guarantee cover per borrower under the scheme from Rs. 10 crore to _______

Answer 4

Rs. 20 crore

Question 5

the extent of the guarantee cover provided has also increased to ______ of the amount in default for loan amount up to Rs. _____ and

_____ of the amount in default for loan amount exceeding Rs. _____

Answer 5

85% , 10 crore ;

75% , 10 crore

Question 6

the annual guarantee fee (AGF) for startups in 27 Champion Sectors has been reduced to _____ from _____

Answer 6

1% , 2%

Question 7

The Champion Sectors have been identified by the government under ________ to provide a thrust to India’s manufacturing and service capabilities

Answer 7

‘Make in India’

Question 8

the notified expansions aim to address the financing needs of __________ startups. As a result of the increased guarantee support and coverage, the number of financial institutions coming forward to provide credit support to startups shall increase, thereby increasing overall fund flow for startups.

Answer 8

innovation-driven

Question 9

The expanded scheme will further reduce the perceived risks associated with lending to startups in established financial institutions, enabling greater financial flow and runway for startups to undertake ________, experimentation, and create cutting edge innovation and technologies.

Answer 9

research and development (R&D)

Question 10

The PM launched the Startup India initiative along with an Action Plan for Startups on 16th January 2016 to create a vibrant startup ecosystem in the country. In line with the Action Plan for Startups, the government approved and notified the CGSS on _______ to provide guarantee up to a specified limit against credit instruments extended to startups by SCBs, AIFIs, NBFCs, and SEBI-registered Alternative Investment Funds.

Answer 10

6th October 2022

Question 11

The broad objective of CGSS is to finance eligible startups, by enabling _______ debt funding to startups through avenues such as working capital, term loans, and venture debt.

Answer 11

collateral free

Question 12

To further catalyze entrepreneurship by providing enhanced credit support to innovators and encourage financial institutions in the ecosystem to provide early-stage debt funds to startups, the _________ had proposed the enhancement of credit availability with guarantee cover for startups

Answer 12

union budget 2025-26