The Delhi Government has partnered with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to empower micro and small enterprises. The collaboration will help small entrepreneurs access loans without collateral while reducing banks’ lending risks. Chief Minister Rekha Gupta said this partnership will mark a new chapter in Delhi’s economic growth, benefitting thousands of entrepreneurs.
Chief Minister Rekha Gupta stated that under this scheme, small entrepreneurs will be able to access loans without pledging any collateral. The loan guarantee provision under this scheme is shared jointly between the Delhi Government and CGTMSE. According to the proposed guarantee structure, borrowers from different categories will be provided with guarantee coverage of up to 95 per cent.
CGTMSE and 20 percent from the Delhi Government
For small enterprises, loans ranging from ₹0 to ₹10 crore will receive 75 percent coverage from CGTMSE and 20 percent from the Delhi Government. For women entrepreneurs and MSMEs promoted by Agniveers, loans of ₹0 to ₹10 crore will receive 90 percent coverage from CGTMSE and 5 per cent from the Delhi Government. For micro enterprises, loans up to ₹5 lakh will receive 85 percent coverage from CGTMSE and 10 per cent from the Delhi Government. Additionally, for loans between ₹5 lakh and ₹10 crore, 75 per cent coverage will be provided by CGTMSE and 20 per cent by the Delhi Government. In this way, total coverage for all will reach 95 per cent.
Chief Minister highlighted the background of this decision
The Scheme Includes Manufacturing, Services, Retail, and Education Sectors The Chief Minister highlighted the background of this decision, noting that CGTMSE was established in 2000 by the Ministry of Micro, Small and Medium Enterprises, Government of India, and the Small Industries Development Bank of India (SIDBI). The institution provides guarantees to banks and other financial institutions to enable small enterprises to access loans without collateral. CGTMSE currently operates with 276 member lending institutions across the country, with a total guarantee portfolio exceeding ₹9.34 lakh crore. In the financial year 2025 alone, it issued guarantees for 27 lakh loan accounts, amounting to ₹3.05 lakh crore. The scheme will cover sectors including manufacturing, services, retail, and education. The Chief Minister also noted that a provision of ₹5 crore has been made for this scheme in the financial year 2025-26 budget.Additionally, a phased contribution of ₹50 crore is expected to be added under this scheme in partnership with CGTMSE.
Government initiative will empower
Boosting Employment and Entrepreneurial Initiatives The Chief Minister emphasised that this Delhi Government initiative will empower micro and small enterprises while strengthening the city’s economic framework. It aims to foster entrepreneurship and expand employment opportunities. The Government seeks to provide financial support to small business owners, enabling them to grow their enterprises without obstacles. She further highlighted that the collaboration with CGTMSE, offering enhanced guarantee coverage of up to 95 per cent on MSE loans, will increase credit flow to Delhi’s MSME sector. This is expected to promote job creation, innovation, and economic resilience, while providing targeted support to new enterprises and women entrepreneurs.
