The Delhi government has launched a scheme to provide loans of up to 10 crore rupees to small and micro entrepreneurs. In partnership with CGTMSE, this scheme will help entrepreneurs with financial security and job creation without requiring collateral.
New Delhi: The Delhi government has announced a major facility for the capital's small, micro, and small-scale entrepreneurs. Chief Minister Rekha Gupta stated that, under a partnership with CGTMSE, business owners will now easily receive loans of up to 10 crore rupees without needing to pledge any collateral.
The objective of this scheme is to prevent small business owners from having to repeatedly visit banks and to rapidly promote the expansion of their businesses. Due to the guarantee from both the government and CGTMSE, banks will face no risk, providing reliable financial support to small enterprises.
95% Guarantee on Loans for Small Industries
Under the new arrangement, small industries will receive up to 95% guarantee on loans of up to 10 crore rupees. Of this, 75% will be guaranteed by CGTMSE, and 20% will be guaranteed by the Delhi government. The same facility will also apply to loans up to 5 lakh rupees for small and micro industries.
CM Rekha Gupta explained that this guarantee will instill confidence in banks, enabling them to lend to small business owners without hesitation. This will ensure that small enterprises easily obtain the necessary capital for new equipment, services, or expansion.
Which Sectors Will Be Covered?
This scheme will cover various sectors such as manufacturing, services, retail trade, and education. An initial provision of 5 crore rupees has been made for this in the budget for the financial year 2025-26, with plans to increase it further to 50 crore rupees.
The Chief Minister stated that this scheme will not only help business owners but also boost employment opportunities, thereby giving new momentum to Delhi's economy.
CGTMSE Helps Small Entrepreneurs with Loans
CGTMSE was established in 2000 by the Ministry of MSME of the Central Government and SIDBI. This institution, in collaboration with 276 banks and financial institutions across the country, provides collateral-free loans to small business owners.
In the financial year 2025 alone, CGTMSE has provided guarantees worth 3.05 lakh crore rupees to over 27 lakh accounts. This initiative will help Delhi's small entrepreneurs compete at both global and national levels.
