New Delhi: In a move to energise micro and small enterprises, the Delhi government on Tuesday signed a Memorandum of Understanding with the Credit Guarantee Fund Trust for Micro and Small Enterprises to launch the Delhi Credit Guarantee Scheme. The programme will enable entrepreneurs to access bank credit without pledging assets and aims to unlock fresh investment across manufacturing, services and retail.
Chief Minister Rekha Gupta said the scheme removes a key barrier to entrepreneurship, adding, “entrepreneurs will now be able to access loans of up to Rs 10 crore without furnishing any collateral.” Under the arrangement CGTMSE will provide a guarantee cover of between 75 and 90 per cent, with the Delhi government guaranteeing a further portion, together ensuring that up to 95 per cent of loans are government-backed and banks’ exposure falls to just 5 per cent.
A dedicated corpus of Rs 50 crore has been created to seed the programme, which officials say can leverage nearly Rs 2,500 crore in bank lending thanks to a 50:1 leverage ratio. The government has also fixed an NPA ceiling of 10 per cent to contain fiscal risk and aims to reach an initial target of one lakh beneficiaries, although CGTMSE has clarified there will be no cap on eligible applicants. Special provisions will support first-time and women entrepreneurs, with the Industry Minister describing the package as transformational. “The provision of collateral-free loans of up to Rs 10 crore is a game-changer,” said Industry Minister Manjinder Singh Sirsa, underlining the scheme’s potential to catalyse long-term expansion and job creation.
Officials said the scheme will cover a broad sectoral sweep including education and skill-training institutions, and could be expanded if demand rises.