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TMI BlogCredit Guarantee Fund for StartupsX X X X Extracts X X X X X X X X Extracts X X X X ..... Credit Guarantee Fund for Startups X X X X Extracts X X X X X X X X Extracts X X X X ..... n, working capital or any other instrument of assistance extended by Member Lending Institutions (MLIs) to finance an eligible borrower i.e. a Startup recognized by Department of Industrial Policy and Promotion (DIPP). The main norms and preconditions of the CGSS are as follows: * Scheme will provide benefit to a Startup recognized by DIPP as per Gazette Notifications issued from time to time. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... * For all resident Directors/Partners, Aadhaar shall be mandatory and for non-resident directors/partners, the passport number shall be a mandatory part of KYC norms. * Member Lending Institutions (MLIs) under the scheme can be Scheduled Commercial Banks and Financial Institutions, RBI registered Non-Banking Financial Companies (NBFCs), SEBI registered AIFs, etc. * The scheme will function u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the trusteeship management of the National Credit Guarantee Trustee Company (NCGTC). * Scheme shall provide portfolio- based credit guarantee. Each portfolio shall comprise at least 10 eligible start up loans, during a particular Financial Year. * Coverage would be extended to the portfolio and the portfolio loss would be reckoned against the "net cash losses" during the portfolio life. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... * Instruments of assistance could be in the form of Venture debt, working capital, debentures, Optionally Convertible debt, etc. * MLIs may provide loans to up to any amount required by an eligible borrower. However, under the scheme the exposure for availing credit guarantee shall be limited to ₹ 500 lakhper eligible borrower. Such loan will be extended by MLIs without any collateral sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urity and/or third party guarantee. * The Management Committee(MC) shall be responsible for the overall supervision and monitoring of the Credit Guarantee Scheme for startups. * A Risk Evaluation Committee (REC) shall also be formed to address conflict of interestissues. This information was given by the Commerce and Industry Minister Smt. Nirmala Sitharaman in a written reply in Rajya Sabha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... today. X X X X Extracts X X X X X X X X Extracts X X X X
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