Delhi Govt, CGTMSE Launch Rs 55 Cr Collateral-Free Loan Scheme For MSMEs & Women Entrepreneurs

New Delhi, Oct 10 (KNN) The Delhi government has introduced a new scheme to provide collateral-free loans to small businesses and women entrepreneurs, aimed at bolstering the capital’s economic growth and promoting inclusive development.

The initiative, announced by Chief Minister Rekha Gupta, is designed to improve credit access for micro, small, and medium enterprises (MSMEs) that often face challenges in securing financing due to a lack of collateral.

As per the Delhi government’s FY26 Budget, an initial allocation of Rs 5 crore has been made for the scheme, with a phased contribution of Rs 50 crore planned in collaboration with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

The scheme provides a shared guarantee structure between CGTMSE and the Delhi government, lowering the risk for lenders and facilitating easier access to funds for eligible enterprises.

According to PTI, guarantee coverage under the scheme will vary based on the type of borrower. 

Small enterprises can avail loans up to Rs 10 crore, with 75 percent of the amount covered by CGTMSE and 20 percent by the Delhi government. 

Women entrepreneurs and MSMEs promoted by Agniveers are eligible for loans up to Rs 10 crore as well, with 90 percent coverage provided by CGTMSE and 5 percent by the Delhi government. 

For micro enterprises, loans of up to Rs 5 lakh will receive 85 percent coverage from CGTMSE and 10 percent from the Delhi government. Loans ranging between Rs 5 lakh and ₹10 crore will have 75 percent coverage by CGTMSE and 20 percent by the Delhi government.

This framework offers borrowers up to 95 percent total guarantee coverage, significantly reducing lending risk and improving the credit environment for small enterprises.

Officials said the initiative could help reduce entrepreneurs’ dependence on personal assets for borrowing, improve access to working capital, and encourage women and defence veterans to start or expand their ventures.

The scheme will extend to sectors including manufacturing, services, retail, and education. 

(KNN Bureau)