AI SummaryDelhi government launched a collateral-free loan scheme for MSMEs in partnership with Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). Small businesses in Delhi can get loans up to ₹10 crore without keeping any property as collateral, with guarantee cover up to 95%.
Department of Industries, Government of NCT of Delhi and DSIIDC manage the scheme. Banks and other member lending institutions of CGTMSE give the loans, and the guarantee cover protects them from losses if a borrower defaults. This makes it easier for micro and small enterprises to get credit.
Key Features of Delhi CGTMSE Collateral-Free Loan Scheme
Guarantee cover under the scheme is shared between CGTMSE and Delhi government. The exact split depends on the borrower category.
- Loan Coverage: Loans up to ₹10 crore are 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.
Also Read: Delhi Mahila Samriddhi Yojana - Registration Guide for Women
Budget and Funding
Delhi government 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 helps guarantee loans and reduces the risk for lending institutions.
Impact and Scale
CGTMSE has a strong track record, having guaranteed over ₹13.67 lakh crore in loans across India through 322 member lending institutions as on March 31, 2026. This partnership with Delhi government is expected to help small businesses in the capital city, especially those who traditionally face problems in accessing credit due to lack of collateral.
Who Can Benefit?
New and existing micro and small enterprises in NCT Delhi can apply under this scheme. Manufacturing, service, trading and educational and training institutions are eligible, except agriculture and self-help groups.
- 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.
How to Apply for Delhi CGTMSE Loan
Loans under this scheme are not given directly by the government. Eligible businesses have to approach a bank or member lending institution registered with CGTMSE. The guarantee process works in these steps:
STEP 1 - Approach a member lending institution such as a bank, NBFC or financial institution registered with CGTMSE and submit the loan proposal.
STEP 2 - Bank checks the proposal and sanctions the loan based on its internal credit appraisal.
STEP 3 - Bank submits the application for guarantee coverage on the CGTMSE portal.
STEP 4 - CGTMSE approves the application, creates CGPAN and generates the fee.
STEP 5 - After fee payment, guarantee coverage is issued to the bank.
CGTMSE guarantee fee has been reduced to a minimum level of 0.37% per year. Women entrepreneurs get special benefits with higher guarantee coverage. For the latest details, check the official Delhi government page for CGTMSE DCGS or the official CGTMSE website.
For smaller business loans, also check Mudra Loan Scheme 2.0.
| Detail | Information |
|---|---|
| Scheme Name | Delhi CGTMSE Collateral-Free Loan Scheme |
| Launched By | Delhi government in partnership with CGTMSE |
| Beneficiaries | Micro and small enterprises in NCT Delhi |
| Loan Limit | Up to ₹10 crore |
| Guarantee Cover | Up to 95% |
| Application Mode | Through CGTMSE member lending institutions |
| Official Website | dsiidc.delhi.gov.in / cgtmse.in |
FAQ's
Is the Delhi CGTMSE loan scheme still running?
Yes, the scheme is ongoing. Delhi government runs it with CGTMSE through member lending institutions, and eligible MSEs in Delhi can still get collateral-free loans under it.
Who can apply for the collateral-free loan?
New and existing micro and small enterprises in NCT Delhi can apply. Manufacturing, service, trading and educational and training institutions are eligible. Agriculture and self-help groups are not covered.
How much loan can a business get?
Loans up to ₹10 crore can be covered, with guarantee cover up to 95% depending on the borrower category.
Where to apply for the loan?
There is no direct online application for borrowers. Approach a bank or member lending institution registered with CGTMSE. The bank handles the guarantee application on the CGTMSE portal.