NEW DELHI, February 10, 2026: In a major policy shift aimed at supporting growth-stage companies, the Department for Promotion of Industry and Internal Trade (DPIIT) has officially doubled the turnover threshold for startup recognition from ₹100 crore to ₹200 crore. This update significantly widens the pool of businesses eligible for government benefits, most notably the Credit Guarantee Scheme for Startups (CGSS).
For startups that previously “outgrew” their recognition after crossing the ₹100 crore mark, this move provides a critical regulatory lifeline. These entities can now continue to access collateral-free debt funding of up to ₹20 crore. The CGSS acts as a government-backed safety net, covering 75% to 85% of the lender’s risk, which encourages banks and financial institutions to provide credit without demanding property or assets as security.
New ₹200 Cr Turnover Rule Opens Collateral-Free Loans for Startups – DPIIT
Beyond general startups, the government has introduced a special “Deep Tech” category. These high-research firms now enjoy an even higher turnover cap of ₹300 crore and an eligibility window of up to 20 years, acknowledging the long development cycles required for breakthrough technologies. Furthermore, for the first time, cooperative societies have been brought into the startup fold to drive innovation in rural and agricultural sectors.
Experts note that this expansion allows scaling startups to strengthen their cash flows and build a formal credit history without diluting their equity to private investors. Eligible founders can now apply for these credit facilities through the JanSamarth Portal or by connecting directly with registered Member Lending Institutions (MLIs).
