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

By Ministry of MSME

Rolling Applications

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

Grant providers

Provider

Ministry of MSME

New Delhi · Delhi · India

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
Submit on the official portal
Use the official application link and verify all details before final submission.
3
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.

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CGSSD — Credit Guarantee Scheme for Subordinate Debt

CGSSD — Credit Guarantee Scheme for Subordinate Debt

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