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    QONEQT in News

    07-Oct-2022 12:53 PM


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    DPIIT notifies credit guarantee scheme for granting collateral-free loans to start-ups; check details here

    The Union Ministry of Commerce and Industry’s Department for Promotion of Industry and Internal Trade (DPIIT) has notified the credit guarantee scheme for start-ups for providing collateral-free loans.

    Under this scheme, borrowers will get a maximum guarantee cover per borrower of Rs 10 crore.

    - Start-ups should be amenable to debt financing as an option.
    - No default to any lending/investing institution - Not classified as a non-performing asset (NPA) according to RBI guidelines Trust or fund to be set up for Credit Guarantee Scheme for Start-ups (CGSS) Central government will set up a trust or fund to guarantee payment against default in loans or debt extended to eligible borrowers.

    Lending institutions will have to closely monitor the borrower accounts and evaluate credit applications.

    The DPIIT will also constitute a Management Committee to oversee the trust’s affairs.
    Source: BusinessToday
    #DPIIT