Delhi Unveils Bold Collateral-Free Loan Plan for Entrepreneurs

The Delhi government has taken a significant step toward bolstering its entrepreneurial landscape by partnering with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). This collaboration is set to offer collateral-free loans to the city's small entrepreneurs, promising new economic growth avenues.

According to Chief Minister Rekha Gupta, this initiative is a transformative chapter for Delhi, benefiting numerous entrepreneurs. The scheme will allow small business owners to secure loans without collateral, with a joint guarantee provision shared by the Delhi Government and CGTMSE, ensuring coverage of up to 95%.

The initiative will support various sectors, including manufacturing, retail, and education. Furthermore, the scheme has earmarked a budget provision of Rs 5 crore for FY 2025-26, with an expected additional contribution of Rs 50 crore from CGTMSE.

(With inputs from agencies.)