Viksit Delhi Credit Loan Scheme Launched, To Offer Up To Rs 10 Crore In Collateral-Free Loans

New Delhi: There's good news for micro and small entrepreneurs in the capital Delhi. The Delhi government has taken a major step to provide financial support to small businesses, by signing a significant agreement with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). Under this agreement, Delhi entrepreneurs will now be able to access loans up to Rs 10 crore (collateral-free).

Up To 95% Guarantee, Priority For Women, Agniveers

Following the agreement at the Delhi Secretariat, Chief Minister Rekha Gupta stated that the scheme's most significant feature is its security cover. Banks typically hesitate to lend without guarantees, but with this agreement, the government and the trust will jointly share the loan risk. Under the scheme, credit guarantees of up to 95 per cent will be provided across various categories. CGTMSE will provide 75 per cent coverage for small enterprises, and the Delhi government will provide 20 per cent.

The Delhi government has also addressed social inclusion in this scheme, with MSMEs started by women entrepreneurs and Agniveers promised special concessions. A trust will provide 90 per cent of the guarantee, while the Delhi government will bear 5 per cent. Loans up to Rs 5 lakh for micro-enterprises will be guaranteed 85 per cent by the trust, and 10 per cent by the government.

Sectors To Benefit

According to the CM, this scheme will be a game-changer for entrepreneurs active in manufacturing, services, retail trade, and the education sector. The government has allocated an initial provision of Rs 5 crore for this scheme in the current financial year (2025-26), which will be gradually increased to Rs 50 crore.

State Minister Manjinder Singh Sirsa said the initiative will increase self-employment opportunities in Delhi, saying that often, despite having innovative ideas, young people lack the necessary guarantees to prove their trustworthiness to banks, preventing them from starting their businesses.

This agreement will reduce banks' risk and enable them to easily disburse loans, he said, adding that this will not only boost businesses, but also create new employment opportunities in the capital.

What Is CGTMSE?

CGTMSE was established in 2000 by the Union Micro, Small and Medium Enterprises (MSME) Ministry, and the Small Industries Development Bank of India (SIDBI). It provides guarantees to banks and other financial institutions to facilitate collateral-free loans to small enterprises.

Currently, CGTMSE works with 276 member lending institutions across the country. Its total guarantee portfolio exceeds Rs 9.34 lakh crore. In FY2025 alone, the organisation issued guarantees for 27 lakh loan accounts, totaling Rs 3.05 lakh crore.

Sectors covered under this scheme include construction, services, retail, and education. The Delhi government has allocated Rs 5 crore for the scheme in the 2025-26 budget. In addition, Rs 50 crore is expected to be transferred to the CGTMSE in a phased manner.

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