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🚀 Empowering India's Innovators: DPIIT's Enhanced Credit Guarantee Scheme In a significant move to bolster India's startup ecosystem, the Department for Promotion of Industry and Internal Trade (DPIIT) has announced pivotal enhancements to the Credit Guarantee Scheme for Startups (CGSS). These changes aim to provide startups with greater access to collateral-free funding, fostering innovation and growth. Key Highlights of the Revised CGSS: Increased Guarantee Cover: The maximum guarantee cover per borrower has been doubled from ₹10 crore to ₹20 crore. Enhanced Coverage Percentage: The scheme now offers an 85% guarantee for loans up to ₹10 crore and a 75% guarantee for loans exceeding ₹10 crore. Reduced Annual Guarantee Fee (AGF): Startups operating in 27 identified 'Champion Sectors' under the 'Make in India' initiative will benefit from a reduced AGF of 1% per annum, down from the previous 2%. Implications for the Startup Ecosystem: Facilitating R&D and Innovation: The enhanced scheme aims to reduce the perceived risks associated with lending to startups, thereby enabling greater financial flow for startups to undertake research and development (R&D), experimentation, and create cutting-edge innovation and technologies. Encouraging Financial Institution Participation: With increased guarantee support and coverage, more financial institutions are expected to provide credit support to startups, increasing the overall fund flow within the startup ecosystem. Promoting Self-Reliance: These measures align with the vision of transforming India into an innovation-driven, self-reliant economy, addressing the financing needs of innovation-driven startups. A Step Towards 'Viksit Bharat': The revised CGSS is a strategic initiative to propel India towards becoming a 'Viksit Bharat' (Developed India) by nurturing a vibrant startup ecosystem. By providing enhanced credit support and reducing financial barriers, the government is fostering an environment conducive to innovation and entrepreneurship. For Startups: Eligible startups recognized by DPIIT can approach registered financial institutions, including Scheduled Commercial Banks, All India Financial Institutions (AIFIs), Non-Banking Financial Companies (NBFCs), and SEBI-registered Alternative Investment Funds (AIFs), to avail the benefits under the revised CGSS. Let's embrace this opportunity to drive innovation and contribute to India's growth story. #StartupIndia #Innovation #Entrepreneurship #DPIIT #CGSS #ViksitBharat #MakeInIndia #StartupFunding