The Delhi government has announced a major boost for city-based entrepreneurs by offering collateral-free loans of up to Rs 10 crore.
This initiative is aimed at supporting micro and small enterprises (MSMEs) across the city.
Chief Minister Rekha Gupta and Industries Minister Manjinder Singh Sirsa signed an MoU with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to make these loans possible.
The government has allocated Rs 50 crore for this scheme, which can provide loans totaling Rs 2,500 crore without requiring any collateral.
How the Scheme Works
Under the scheme, the Centre will cover 75–90% of the loan guarantee, while the Delhi government will provide the remaining guarantee.
The scheme applies to all micro and small sectors, including manufacturing, services, and retail.
To manage financial risk, the government has set a non-performing assets (NPA) limit at 10%.
There is no cap on the number of beneficiaries, though the initial target is one lakh entrepreneurs.
This initiative allows small businesses, start-ups, and traders to access loans without running from bank to bank or arranging collateral.
A 50-Fold Boost for Delhi Entrepreneurs
The scheme offers a 50-fold leverage, meaning an investment of Rs 2 crore can support loans worth up to Rs 100 crore.
Special provisions have been made to support women and SC entrepreneurs, making it easier for them to grow their businesses.
This initiative is expected to benefit around one lakh people this year.
Industries Minister Sirsa called it a historic reform for Delhi’s MSME sector, which includes nearly one million businesses and over two lakh manufacturing units.
According to the government, this scheme is not just about giving loans; it is aimed at empowering MSMEs for long-term growth and large-scale investment, breaking barriers like excessive documentation and collateral requirements.
