Delhi Small Businesses Rejoice: Up to ₹10 Crore Loans Without Collateral Announced by CM Rekha Gupta

In a landmark initiative to strengthen small and micro businesses in the capital, the Delhi government has joined hands with CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) to launch the Delhi Credit Guarantee Scheme. Under this scheme, entrepreneurs can avail loans of up to ₹10 crore without providing any collateral, a move aimed at reducing banks’ risk exposure and boosting Delhi’s business ecosystem.

The Memorandum of Understanding (MoU) was signed on Tuesday at the Delhi Secretariat in the presence of Chief Minister Rekha Gupta. The scheme is designed to tackle one of the biggest hurdles faced by small business owners—access to finance without the burden of security or collateral.

CM Rekha Gupta said, “This initiative will not only make capital more accessible for entrepreneurs but also mitigate banks’ lending risks, enabling them to extend credit to small businesses without hesitation. This will improve the business environment in Delhi, generate new employment opportunities, foster innovative ideas, and promote inclusive economic growth across the city.”

Reducing Banks’ Risk

Explaining the scheme, CM Gupta stated that the loan responsibility will be jointly covered by the government and CGTMSE. CGTMSE will guarantee 75–90% of the loan, while the Delhi government will cover the remaining 5–20%. This ensures that banks are effectively secured for 95% of the loan, reducing their risk to just 5% and encouraging them to provide finance confidently.

Inclusive Support Across Sectors

The scheme is open to businesses across sectors including manufacturing, services, retail, education, and training institutes. The government has allocated ₹50 crore as a dedicated fund, which, through leveraging, can enable banks to disburse loans worth up to ₹2,500 crore. The fund can be increased if required. With a 50x leverage, an investment of ₹2 crore could potentially generate loans worth ₹100 crore, while maintaining a 10% NPA cap to limit financial risk to the government.

The scheme initially aims to benefit one lakh entrepreneurs, though there is no cap on the number of beneficiaries. Any small business in Delhi meeting the eligibility criteria can access loans guaranteed by the government.

Special Focus on Women Entrepreneurs

Chief Minister Gupta emphasized that the scheme will particularly support new startups and women entrepreneurs, making it easier for them to access funding. The initiative is expected to create new employment opportunities and foster a robust and sustainable MSE ecosystem in Delhi.

Industry Minister Praises Initiative

Delhi Industry Minister Manjinder Singh Sirsa called the move a historic gift for the city’s industrial and economic future. He highlighted that the scheme represents a structural reform for approximately 10 lakh MSMEs, including over 2 lakh manufacturing units, providing them with greater access to long-term finance and investment.

Minister Sirsa also noted that women have historically faced challenges in obtaining loans due to cumbersome documentation and collateral requirements. This initiative, he said, is a game-changer, enabling MSMEs to expand and thrive without such barriers.

CM Rekha Gupta concluded that the collaboration between CGTMSE and the Delhi government represents a major step towards inclusive economic development, strengthening Delhi as a cornerstone for a developed India.