Delhi govt and CGTMSE to offer collateral-free loans to small entrepreneurs

New Delhi: In a major push to boost entrepreneurship and strengthen the MSME ecosystem, the Delhi government has partnered with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to provide collateral-free loans to small and medium

entrepreneurs. The initiative aims to ease credit access for thousands of business owners while reducing the lending risks for banks.

Chief Minister Rekha Gupta described the partnership as a “new chapter in Delhi’s economic growth,” saying it will empower small enterprises and promote self-reliance. The scheme offers up to **95 per cent guarantee coverage** on loans, shared between the Delhi Government and CGTMSE.

According to the guarantee structure, loans between Rs 0 and Rs10 crore for small enterprises will receive 75 per cent coverage from CGTMSE and 20 per cent from the Delhi Government. For women entrepreneurs and MSMEs led by Agniveers, the guarantee will be 90 per cent from CGTMSE and 5 per cent from the Delhi Government. Micro enterprises with loans up to Rs 5 lakh will get 85 per cent coverage from CGTMSE and 10 per cent from the Delhi Government, while larger loans up to Rs 10 crore will enjoy a total coverage of 95 per cent. The scheme covers manufacturing, services, retail, and education sectors, with an initial budget provision of Rs 5 crore for FY 2025-26. Over time, a phased contribution of Rs 50 crore will be added to expand its reach. mpost