The Delhi government has initiated a significant financial scheme aimed at bolstering micro and small enterprises (MSEs) by providing collateral-free loans up to ₹10 crore. This initiative, formalized through a memorandum of understanding with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), is set to transform the financial landscape for small businesses in Delhi.
Chief Minister Rekha Gupta described the scheme as a major boost for entrepreneurs, highlighting that loan guarantees will be shared between the city government and CGTMSE under the Delhi Credit Guarantee Scheme. CGTMSE will cover 75-90% of the loan amount, with the remainder backed by the Delhi government, effectively reducing banks’ exposure to just 5% and encouraging more confident lending practices.
The initiative is expected to ease access to capital for aspiring entrepreneurs in sectors such as manufacturing, services, retail, and education. A dedicated fund of ₹50 crore has been established to facilitate nearly ₹2,500 crore in loans, with potential for future expansion. The program aims to reach one lakh beneficiaries initially, with a focus on supporting first-time and women entrepreneurs.
This scheme is part of a broader effort to improve Delhi’s business environment, promote innovation, and generate employment. By reducing financial barriers, the government hopes to foster an inclusive urban economy that benefits a diverse range of sectors. The initiative is anticipated to create substantial employment opportunities and a robust MSE ecosystem in Delhi.
Published in SouthAsianDesk, January 28th, 2026
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