India’s DPIIT has revamped its Credit Guarantee Scheme for Startups, doubling the credit limit from ₹10 crore to ₹20 crore and offering up to 85% guarantee coverage for smaller loans. Startups in 27 priority sectors will also benefit from reduced fees.
Insights:
- This move gives startups easier access to collateral-free loans and encourages more risk-taking and R&D.
- Champion sectors under ‘Make in India’ — like manufacturing and services — now get a 50% cut in the annual guarantee fee.
- With fewer funding roadblocks, more early-stage companies can scale without quickly giving up equity.
Educatekaro’s Takeaway:
India’s backing its startups with not just vision but capital — making it easier to build bold ideas without fear of financial risk.
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