CGSSD — Credit Guarantee Scheme for Subordinate Debt
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Quick Answer
Subordinate debt with 90% CGTMSE guarantee for stressed/NPA-classified MSMEs
- Funding amount
- Varies
- Funding type
- Debt
- Provider
- Ministry of MSME
- Application deadline
- Rolling
- Location
- Open to startups registered in India
About this loan
Provides subordinate debt (quasi-equity) to promoters of stressed / NPA-classified MSMEs to revive operations. CGTMSE provides 90% guarantee; promoter contributes 10%. Allows the promoter to infuse equity into the stressed company and restore its financial health.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Grant providers
The Ministry of Micro, Small and Medium Enterprises (Ministry of MSME) is the Government of India ministry for the MSME sector. It does not run one programme. It runs a set of central schemes, each with its own portal and its own route in: a credit-linked subsidy for new…
Learn moreBenefits & Funding
- Fund type
- Debt
- Equity
- Equity-free
- Repayment
- Repayable
What You Get
CGSSD provides promoters of stressed MSMEs access to subordinate debt that they can infuse into their companies as quasi-equity. CGTMSE covers 90% of the credit guarantee, significantly reducing the lender's risk and making it possible for NPA-classified businesses to access funding. The promoter contributes just 10%, and on successful revival, the MSME can return to normal banking relations. No government equity stake is created.
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Application Process
- 1
Identify and document the distress /
Identify and document the distress / NPA status of the MSME.
You - 2
- 3
- 4
- 5
How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
Answer the form inside the grant tracker — AI drafts each response using your past answers, so you're not starting from a blank page.
- 2
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 3
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 4
Submit on the official portal
Use the official application link and verify all details before final submission.
- 5
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
What is the CGSSD scheme?
The Credit Guarantee Scheme for Subordinate Debt (CGSSD) helps promoters of stressed or NPA-classified MSMEs infuse subordinate debt (quasi-equity) into their companies to revive operations. CGTMSE provides a 90% guarantee on the subordinate debt.
Who is eligible to apply?
Promoters of MSMEs whose accounts have been classified as stressed or NPA (Non-Performing Asset) by banks, provided the MSME has a viable revival plan.
How much funding can a promoter get?
The scheme does not specify a fixed upper limit publicly — the quantum is determined by the revival plan and the bank's assessment. The promoter contributes 10% while CGTMSE guarantees 90%.
Does the government take equity in my company?
No equity is taken by the government. The support is in the form of a guaranteed subordinate loan that the promoter infuses into the company as quasi-equity.
Is this a grant?
No. This is a guaranteed loan — it must be repaid. The key benefit is the 90% credit guarantee from CGTMSE, which makes it easier for banks to lend to stressed MSMEs.
How do I apply?
Approach CGTMSE's member lending institutions (scheduled commercial banks) or visit www.cgtmse.in for the list of eligible lenders and the application process.
Sources
Data on this page is compiled from official program and provider references.
