• Source:JND

Small businesses in Delhi will now be able to access bank loans of up to Rs 10 crore without providing any collateral or property documents. The Delhi government has signed a Memorandum of Understanding (MoU) with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to roll out the Delhi Credit Guarantee Scheme.

The agreement was signed at the Delhi Secretariat in the presence of Chief Minister Rekha Gupta.

Govt to guarantee 95% of loans

Under the new scheme, when an eligible entrepreneur takes a loan from a bank, CGTMSE will guarantee 75 to 90 per cent of the loan amount. The Delhi government will provide an additional guarantee of 5 to 20 per cent.

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This means that up to 95 per cent of the loan will be guaranteed, reducing the banks’ exposure to just 5 per cent. Officials said this step is expected to make banks more willing to lend to small and medium enterprises.

Boost for startups and jobs

Speaking at the event, the Chief Minister said many young people in Delhi want to start their own businesses but often struggle to secure financial support. She said the new scheme would remove this hurdle and help businesses expand, leading to more employment opportunities.

The scheme will cover enterprises in manufacturing, services, retail, education, and training sectors. Special support will also be extended to women entrepreneurs.

Rs 50 crore fund, one lakh beneficiaries target

The Delhi government has created a dedicated fund of Rs 50 crore for the scheme. This fund is expected to help banks disburse loans worth nearly Rs 2,500 crore.

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The initial target is to provide collateral-free loans to around one lakh people. Officials said there is no fixed upper limit on beneficiaries, and the fund size can be increased if demand rises.

Risk cap and future expansion

To limit financial risk, a non-performing asset (NPA) cap of 10 per cent has been set. Under the scheme, loans of up to Rs 100 crore may be enabled with a government investment of Rs 2 crore.

Delhi Industries Minister Manjinder Singh Sirsa and senior officials were also present during the signing ceremony.


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