Q. With reference to Credit Guarantee Scheme for Startups (CGSS) consider the following statements:
1. The scheme will provide collateral-free debt funding to startups.
2. Scheduled commercial banks are one of the member institutions (MI) eligible for lending under this scheme.
Select the correct statement using the code given below:
Statement 1: Credit Guarantee Scheme for Startups (CGSS) will provide collateral-free debt funding to startups defined in the Gazette Notification issued by The Department for Promotion of Industry and Internal Trade (DPIIT).
Statement 2: CGSS has been approved for the purpose of providing credit guarantees to loans extended by member institutions (MIs) to finance eligible borrowers being startups. MIs include financial intermediaries (banks, financial institutions, NBFCs, AIFs) engaged in lending/investing and conforming to the eligibility criteria approved under the Scheme. Source: https://www.thehindu.com/business/govt-notifies-credit-guarantee-scheme-for-start-ups/article65981719.ece#:~:text=%22The%20Central%20Government%20has%20approved,being%20startups%2C%22%20it%20said.
