Soon, collateral-free loans for small entrepreneurs in Delhi: Govt

According to officials, the collaboration between Delhi government and CGTMSE is aimed at expanding credit access to the MSE sector while reducing the lending risks of banks.

Under the scheme, loans up to Rs 10 crore will be eligible for guarantee coverage of up to 95 per cent, jointly shared by the Delhi government and CGTMSE. For small enterprises, 75% of the coverage will come from CGTMSE and 20 per cent from the Delhi government. Women entrepreneurs and MSMEs promoted by Agniveers will receive 90% coverage from CGTMSE and 5 per cent from the Delhi government. For micro enterprises, loans up to Rs 5 lakh will be covered up to 95 per cent through a combination of 85% from CGTMSE and 10 per cent from the government, officials said.

Chief Minister Rekha Gupta said the initiative would “mark a new chapter in Delhi’s economic growth” and benefit thousands of small entrepreneurs in manufacturing, services, retail, and education sectors.

CGTMSE, established in 2000 by the Ministry of Micro, Small and Medium Enterprises (MSME) and Small Industries Development Bank of India (SIDBI), provides guarantees to lending institutions to facilitate collateral-free credit. In the financial year 2025, CGTMSE issued guarantees for 27 lakh loan accounts amounting to Rs 3.05 lakh crore, officials said.

The Delhi government has allocated Rs 5 crore for the scheme in 2025–26, with an additional phased contribution of Rs 50 crore proposed in collaboration with CGTMSE, officials added.

CGTMSE currently has 276 member lending institutions and a total guarantee portfolio of over Rs 9.34 lakh crore.

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