The Delhi government has offered a significant boon to micro, small, and medium entrepreneurs (MSMEs) in the capital. They will no longer face difficulties in securing bank loans to expand their businesses.
New Delhi: There is good news for micro, small, and medium enterprises (MSMEs) in Delhi. Chief Minister Rekha Gupta has announced that the Delhi government will partner with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to provide loans of up to 10 crore rupees to entrepreneurs without requiring collateral. This initiative is expected to be a landmark step towards fostering small industries, startups, and employment generation in the capital.
The Chief Minister explained that the scheme's objective is to ensure easy access to credit for small businesses, eliminating the need for them to make repeated visits to banks. She further stated that this initiative will not only foster the growth of small enterprises but also inject new dynamism into Delhi's economy and expand job opportunities for the youth.
How to Avail Loans and Security?
Under the new framework, small industries will receive up to 95 percent security on loans up to 10 crore rupees. Of this, 75 percent of the security will be provided by CGTMSE, with the remaining 20 percent covered by the Delhi government. This robust mechanism ensures that banks will not incur any losses even if a loan defaults for any reason. Similar provisions have been extended to Micro Enterprises, where the same guarantee will apply to loans up to 5 lakh rupees. This comprehensive approach will enable banks to readily extend credit to small and medium enterprises.
Which Sectors Will Be Covered?
The scheme encompasses various sectors, including manufacturing, services, retail trade, and education. An initial allocation of 5 crore rupees has been made for this initiative in the financial year 2025-26 budget, with plans to expand it to 50 crore rupees. Chief Minister Rekha Gupta stated, “As small industries grow, so will employment opportunities. This will create job prospects for the youth and further strengthen Delhi's economy. This scheme is primarily designed to provide small businesses with easy access to banking services.”
CGTMSE was established in the year 2000 by the Ministry of MSME, Government of India, and the Small Industries Development Bank of India (SIDBI). The primary objective of this institution is to facilitate collateral-free loans for small business owners across the nation. Currently, CGTMSE's extensive network comprises 276 banks and financial institutions. In the financial year 2025 alone, the trust has provided guarantees for over 27 lakh accounts, totaling 3.05 lakh crore rupees. Thus, this scheme is proving to be a crucial financial pillar for small and medium industries throughout the country.
