For Startups
Funding for Startups — CGTMSE, MSME Loans, Venture Debt & Pre-Series Bridge
Startups face the toughest funding landscape — short vintage, weak ITR, no collateral. We help structure realistic options: CGTMSE, MSME loans, venture debt.
Realistic funding options for startups
CGTMSE-backed MSME loan
Collateral-free up to ₹5 Cr under the Credit Guarantee scheme. Most banks offer. Requires Udyam registration, ITR (or projection if new), banking history. Slower TAT (4–6 weeks).
NBFC working capital OD
Small-ticket (₹5–50 L) OD against banking + GST. Higher rate (16–22%) but flexible. Useful for working capital bridge.
GST-based fintech loan
For startups with >12 months of GST turnover. Fast (3–7 days), small ticket (₹5–25 L), high rate (18–24%). Best for short-term needs.
Venture debt
For venture-backed startups that have raised an equity round. Specialised venture debt funds (InnoVen, Stride, Alteria) lend against the equity raise. Rate 12–15% + warrants.
Equipment finance
For startups with tangible assets — servers, machinery, vehicles. Asset-backed, lender holds lien on the asset. Lower rate (11–14%).
Founder personal loan + collateral
For very early-stage startups, founder's personal credit + collateral (property, FD) is often the only realistic source. We structure LAP at 10–12% against founder/family property.
What we honestly tell startups
- If <6 months vintage, no ITR, no collateral → very limited options (founder personal loan, friends & family, angel)
- If 1–2 years vintage, banking + GST growing → CGTMSE + NBFC OD become possible
- If 3+ years vintage, ITR positive → traditional bank MSME loans open up
- If venture-backed with an equity raise → venture debt is a strong option
- If pre-revenue, pre-VC → focus on equity (angels, accelerators) — debt is premature
- If profitable but cash-tight → CC/OD against receivables is the cleanest debt
- We won't push a 24% unsecured loan on a startup that should be raising equity
Common startup scenarios
Startups we've helped — realistic outcomes
D2C brand, 2 years, ₹3 Cr revenue, ₹40 L profit
CGTMSE-backed ₹50 L term loan at 12% + ₹25 L NBFC OD at 18% for inventory. Total ₹75 L at blended 14%. Avoided a 24% fintech alternative.
SaaS startup, pre-revenue, post-angel
Honest assessment: no traditional debt available. Referred to two venture debt funds and an accelerator. Returned 6 months later post-VC seed round — structured ₹2 Cr venture debt at 13% + warrants.
Manufacturing startup, Udyam registered, 18 months
CGTMSE ₹1 Cr term loan at 11% for plant + ₹40 L machinery finance at 12% for CNC line. Collateral-free, total ₹1.4 Cr at blended 11.3%.
Marketplace seller scaling fast
GST-based fintech ₹20 L loan at 22% for festival inventory + ₹10 L OD at 18%. Quick disbursement, paid down within 90 days post-Diwali. Higher rate but matched the use case.
FAQ
Common questions
I'm a 6-month-old startup with no revenue — can I get a loan?+
Realistically, no traditional debt is available at 6 months with no revenue. Your options are: (1) Founder personal loan / credit card (small tickets only); (2) Friends & family / angel investment; (3) Accelerator program with grant/seed; (4) Wait — build revenue and GST history, then CGTMSE becomes available at 12+ months. We'd rather tell you this honestly than push a 24% loan that will crush your business.
I've raised a seed round from VCs — can I get venture debt?+
Yes, if you've raised from a recognised institutional VC. Venture debt funds (InnoVent, Stride, Alteria, Trifecta, etc.) typically lend 25–40% of the last equity round, at 12–15% p.a. + equity warrants. The process takes 4–8 weeks. We help prepare the venture debt pack — financial model, use of funds, repayment plan — and match you to the right fund.
Can I get a startup business loan without collateral?+
Yes — through CGTMSE. The Credit Guarantee Trust provides collateral-free cover up to ₹5 Cr for MSMEs (including eligible startups). Most banks and NBFCs offer CGTMSE-backed loans. You need Udyam registration, banking history (12+ months), and either ITR or projected financials. The guarantee registration adds 1–2 weeks to TAT but eliminates collateral requirement.
Next step
Get your file reviewed before you apply again.
Share basic details — a senior advisor will read your profile, diagnose what's blocking approval, and tell you exactly what to fix first.
- No CIBIL pull until strategy is agreed
- No blind portal submissions
- Review by a senior advisor — not a call-centre agent
Explore further
Continue your funding readiness journey
Funding Readiness Assessment
Score your business against the 6 pillars lenders actually evaluate.
Why Loan Applications Get Rejected
The 8 silent killers behind approval failures — and how to fix each.
Tax Planning for Loan Eligibility
How ITR & GST decisions today decide your borrowing capacity tomorrow.
Business Loan vs LAP
Which structure actually fits your cash flow, risk and tenure.
Credit Profile Improvement
From low CIBIL or rejection to a fundable file — the structured way.