Delhi Launches Collateral-Free Loan Scheme for MSMEs

13 Oct 2025 CW Team

As announced in Delhi’s FY26 Budget, the government has allocated Rs 50 million for the initiative, with an additional Rs 500 million to be contributed in phases in partnership with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

According to Chief Minister Rekha Gupta, the scheme will enable small enterprises and women-led businesses to secure loans without the burden of collateral, reducing their reliance on personal assets and enhancing credit access.

The scheme offers a guarantee coverage structure designed to minimise lenders’ risk and improve credit flow:

Small enterprises: Loans up to Rs 1 billion, with 75 per cent coverage by CGTMSE and 20 per cent by the Delhi government.

Women entrepreneurs and MSMEs promoted by Agniveers: Loans up to Rs 1 billion, with 90 per cent coverage by CGTMSE and 5 per cent by the Delhi government.

Micro enterprises: Loans up to Rs 500,000, with 85 per cent coverage by CGTMSE and 10 per cent by the Delhi government.

Loans between Rs 500,000 and Rs 1 billion: 75 per cent coverage by CGTMSE and 20 per cent by the Delhi government.

This structure ensures borrowers can receive up to 95 per cent total guarantee coverage, significantly lowering the lending risk for financial institutions and easing the process for entrepreneurs seeking capital.

Gupta described the initiative as “a new chapter in Delhi’s economic growth,” noting that it will empower micro, small, and women-led enterprises, and foster entrepreneurship in sectors such as manufacturing, services, retail, and education.

Established in 2000, CGTMSE collaborates with 276 lending institutions and maintains a guarantee portfolio exceeding Rs 9.34 trillion. In FY25, it issued guarantees for 2.7 million loan accounts worth Rs 3.05 trillion, underscoring its pivotal role in strengthening India’s MSME credit ecosystem.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

The Delhi government has launched a new scheme to provide collateral-free loans to small businesses and women entrepreneurs, aiming to boost the city’s economic growth and improve access to finance. As announced in Delhi’s FY26 Budget, the government has allocated Rs 50 million for the initiative, with an additional Rs 500 million to be contributed in phases in partnership with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). According to Chief Minister Rekha Gupta, the scheme will enable small enterprises and women-led businesses to secure loans without the burden of collateral, reducing their reliance on personal assets and enhancing credit access. The scheme offers a guarantee coverage structure designed to minimise lenders’ risk and improve credit flow: Small enterprises: Loans up to Rs 1 billion, with 75 per cent coverage by CGTMSE and 20 per cent by the Delhi government. Women entrepreneurs and MSMEs promoted by Agniveers: Loans up to Rs 1 billion, with 90 per cent coverage by CGTMSE and 5 per cent by the Delhi government. Micro enterprises: Loans up to Rs 500,000, with 85 per cent coverage by CGTMSE and 10 per cent by the Delhi government. Loans between Rs 500,000 and Rs 1 billion: 75 per cent coverage by CGTMSE and 20 per cent by the Delhi government. This structure ensures borrowers can receive up to 95 per cent total guarantee coverage, significantly lowering the lending risk for financial institutions and easing the process for entrepreneurs seeking capital. Gupta described the initiative as “a new chapter in Delhi’s economic growth,” noting that it will empower micro, small, and women-led enterprises, and foster entrepreneurship in sectors such as manufacturing, services, retail, and education. Established in 2000, CGTMSE collaborates with 276 lending institutions and maintains a guarantee portfolio exceeding Rs 9.34 trillion. In FY25, it issued guarantees for 2.7 million loan accounts worth Rs 3.05 trillion, underscoring its pivotal role in strengthening India’s MSME credit ecosystem.

Real Estate

07 Jul 2026

Pecan Realty Completes Rs 1.5 Billion Transactions

Pecan Realty has recently completed four institutional transactions worth over Rs 1.5 billion over the past two years, strengthening its position as an execution-led real estate platform. The deals include resolution-led acquisitions, structured finance transactions and capital partnerships across its development portfolio.The transactions covered acquisitions through the National Company Law Tribunal process and helped provide repayment or exits to both private and public sector lenders. The company said the deals demonstrate its ability to resolve complex project situations, work with instit..

Real Estate

07 Jul 2026

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

Infrastructure Urban

07 Jul 2026

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..