Delhi government has launched a new collateral-free loan scheme for MSME’s in partnership with Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to support Micro, Small, and Medium Enterprises (MSMEs). This scheme aims to boost entrepreneurship, create jobs, and promote local economic growth by providing simpler access to credit without the need for collateral.
Key Features of Delhi’s New Collateral-Free Loan Scheme for MSME’s
- Loan Coverage: Loans up to ₹10 crore will be covered up to 95% by a combination of CGTMSE and Delhi government, depending on the borrower category.
- Micro Enterprises: For loans up to ₹5 lakh, 85% coverage is provided by CGTMSE and 10% by Delhi government.
- Women Entrepreneurs & Agniveer-Promoted MSMEs: For loans up to ₹10 crore, 90% coverage comes from CGTMSE and 5% from Delhi government.
- Other Small Enterprises: Coverage is split as 75% from CGTMSE and 20% from Delhi government.
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Budget and Funding
Delhi government has allocated ₹5 crore for the financial year 2025 – 26 to support this scheme, with plans to contribute a phased amount totaling ₹50 crore. This funding will help guarantee loans and reduce the risk for lending institutions.
Impact and Scale
CGTMSE has a strong track record, having guaranteed over ₹9.34 lakh crore in loans across India through 276 member lending institutions. This partnership with Delhi government is expected to help small businesses in the capital city, especially those who traditionally face challenges in accessing credit due to lack of collateral.
Who Can Benefit?
- Micro enterprises seeking loans up to ₹5 lakh.
- Women entrepreneurs and MSMEs promoted by Agniveer, eligible for loans up to ₹10 crore.
- Other small enterprises looking for collateral-free loans.
This scheme represents a big step towards encouraging a supportive environment for MSMEs in Delhi, encouraging innovation, growth, and employment generation.