In a major boost for small businesses, the Delhi government has announced collateral-free loans of up to ₹10 crore for city-based entrepreneurs.
This initiative aims to support micro, small, and medium enterprises (MSMEs), including manufacturing, services, and retail sectors.
Chief Minister Rekha Gupta, along with Industries Minister Manjinder Singh Sirsa, signed an MoU with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to make this scheme possible.
Key Details of the Scheme
The government has allocated ₹50 crore to provide loans worth ₹2,500 crore without collateral.
There is no cap on beneficiaries, though the initial target is 1 lakh entrepreneurs.
The Central government will guarantee 75–90% of the loan, while the Delhi government will cover the remaining guarantee.
A 10% limit on non-performing assets (NPA) has been set to manage financial risk.
Women and SC entrepreneurs will get additional benefits under this scheme.
A Major Boost for Small Businesses
“This scheme is a game-changer for small entrepreneurs in Delhi,” said CM Rekha Gupta.
“Traders, manufacturers, and young entrepreneurs no longer need to run from bank to bank for loans or worry about collateral.”
Sirsa added that the program has a 50-fold leverage, meaning an investment of ₹2 crore could enable loans worth up to ₹100 crore.
The scheme is expected to benefit around 1 lakh people this year, supporting over 1 million MSMEs in the Capital.
He highlighted that traditional banking hurdles, like excessive documentation and property requirements, have often blocked access to credit, especially for women entrepreneurs.
“Our goal is not just to provide loans, but to empower MSMEs for long-term growth and large-scale investment,” he said.
This initiative is being hailed as a historic reform that could transform Delhi’s industrial and economic landscape by making credit easier, faster, and more accessible for small and micro enterprises.