In a game-changing move for Delhi’s bustling small business scene, Chief Minister Rekha Gupta unveiled the Delhi Credit Guarantee Scheme on Tuesday. Signed at the Delhi Secretariat between the government and the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), this initiative promises to shatter the biggest barrier for micro and small enterprises: access to bank loans without collateral.
Gupta emphasized that the scheme will streamline capital flow to entrepreneurs, slashing banks’ risks and encouraging bolder lending. ‘This isn’t just about loans; it’s about igniting innovation, creating jobs, and building an inclusive urban economy,’ she declared. Present at the event were Minister Manjinder Singh Sirsa and top officials from relevant departments.
Under the plan, entrepreneurs can now secure loans up to Rs 10 crore without guarantees. CGTMSE will cover 75-90% of the guarantee, with the Delhi government backing the rest, ensuring up to 95% coverage. This leaves banks with just 5% risk, making them far more willing to fund startups in manufacturing, services, retail, education, and skill training.
A dedicated Rs 50 crore fund powers the scheme, leveraging a 50:1 ratio to unlock Rs 2,500 crore in loans. With a 10% NPA cap to safeguard public money, the government aims to reach 100,000 beneficiaries initially, though CGTMSE confirms no upper limit for eligible applicants. Special support targets first-time entrepreneurs and women, fostering a robust MSE ecosystem.
Minister Sirsa hailed it as a historic gift for Delhi’s 10 lakh MSMEs, including over 200,000 manufacturing units. ‘Gone are the days of endless paperwork and collateral demands that sidelined women entrepreneurs,’ he said. This collaboration positions Delhi as a hub for inclusive growth, laying the foundation for a developed capital.