September 2, 2026: Startups looking to raise debt from public sector banks now have a more streamlined route through Jan Samarth to apply for credit guarantee support under the Credit Guarantee Scheme for Startups (CGSS).
The scheme, operated under the Department for Promotion of Industry and Internal Trade (DPIIT), is now available through the Startup Common Application on the Jan Samarth Portal. The move brings startup credit applications from participating public sector banks onto a common digital platform.
For founders, the key change is convenience. Instead of navigating separate processes across banks, eligible startups can use the common application route to seek credit covered under CGSS.
Loans of up to ₹20 crore are eligible for coverage under the scheme, subject to the applicable eligibility criteria and lending conditions. The credit guarantee is designed to help startups access institutional debt where the lack of collateral or limited operating history can otherwise make borrowing difficult.
The application process also uses existing business information such as PAN, GST and income-tax return data, which is intended to reduce paperwork and make verification more efficient.
Startups Can Now Apply for Credit Guarantee Support on Jan Samarth
Women entrepreneurs can also benefit from specific concessions available under the scheme.
The move comes as startups increasingly look beyond equity funding to finance working capital, expansion, technology investments and other business needs. Easier access to bank credit could be particularly relevant for startups that have moved beyond the early fundraising stage but are not yet in a position to provide substantial collateral.
Founders should note that the credit guarantee does not mean every applicant will automatically receive a loan. Startups will still need to meet the scheme’s eligibility requirements and undergo the lender’s credit assessment and approval process.
For eligible businesses, however, the integration with Jan Samarth could make it easier to compare the financing route available through participating public sector banks and begin the application digitally.
Startups can access the application through the Jan Samarth Portal and review the eligibility and lending requirements before submitting their details.
A step-by-step application guide is also available for founders who want to understand the process before applying.
For applying visit https://www.jansamarth.in/business-loan-startup-scheme
