Answer

1. F

   Facts

   What You Get: Collateral-free bank loans up to ₹10 Crore, government guarantees up to 80% of principal; Instrument types: term loans, working capital, venture debt; Administered by NCGTC (National Credit Guarantee Trustee Co.), member lending banks include SBI, HDFC, ICICI, Axis; Also note: CGTMSE (for MSMEs) covers up to ₹20Cr with 75-85% guarantee, accessible without DPIIT if MSME registered.

2. P

   Provisions and law

   • DPIIT + Ncgtc · Credit Guarantee Scheme for Startups
3. A

   Analysis

   Eligibility (Cgss): DPIIT-recognised startup (mandatory); Eligibility certified by the Member Institution (lending bank); Pvt Ltd or LLP (bank's standard creditworthiness assessment applies); No collateral required, personal guarantee may still be asked by some banks (negotiate this) Process: Apply directly to a member lending bank (not to NCGTC); Bank assesses creditworthiness → applies to NCGTC for guarantee cover → loan sanctioned; Timeline: 30-90 days depending on bank; Interest rate: base rate + 1-3% spread. Better than market because of guarantee. Loan Agreement: Standard bank loan documentation. Covenants on DSCR, net worth, restriction on further borrowings above threshold without bank consent. Personal guarantee: Banks often still ask for personal guarantee despite CGSS. This is negotiable. NCGTC cover should reduce or eliminate it, push back.

4. C

   Conclusion

   1. 1DPIIT Recognition Certificate
   2. 2Audited P&L, Balance Sheet (2-3 yrs)
   3. 3Bank statements (12 months)
   4. 4Loan purpose and utilisation plan
   5. 5Cash flow projections (2 years)
   6. 6MCA incorporation docs + PAN

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.