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.

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.

Approach CGTMSE's member lending institutions (scheduled commercial banks) or visit www.cgtmse.in for the list of eligible lenders and the application process.

CGSSD — Credit Guarantee Scheme for Subordinate Debt (2026)

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.

CGSSD — Credit Guarantee Scheme for Subordinate Debt

CGSSD — Credit Guarantee Scheme for Subordinate Debt

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