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.

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.

Equipment

29 Nov 2025

Powering India’s Infra Future

Excon 2025, South Asia’s largest construction equipment exhibition, is set to return in a grand 13th edition from 9-13 December 2025 at the Bangalore International Exhibition Centre (BIEC), Bengaluru. Organised by the Confederation of Indian Industry (CII) and supported by the Indian Construction Equipment Manufacturers’ Association (ICEMA), the mega event is expected to reinforce its position as the premier marketplace for construction technologies, equipment and infrastructure solutions. The event will host over 1,250 exhibitors, including 160+ international participants, and attract mor..

Infrastructure Urban

29 Nov 2025

India will be a strategic part of our growth to 2028

Smiley Monroe is strengthening its footprint in India as a key growth market for its conveyor belts and engineered components business. In this interaction, Prabhu Gopinath, Operations Director, outlines the company’s expansion roadmap, quality focus, and sustainability commitments driving future scale.Can you share Smiley Monroe's journey and its core mission?Smiley Monroe was started in Northern Ireland in 1979, supplying conveyor belts to local quarries. Since then, the company has grown to become a global leader in the supply of endless belts and CNC-cut rubber and plastic part..

Equipment

29 Nov 2025

Infra Engineers India Pvt Ltd Accelerates Hybrid Excavation

Infra Engineers India Pvt Ltd (IEPL), headquartered in Chennai, has emerged as a trusted name in the used construction equipment business for nearly a decade. What sets IEPL apart is its commitment to research and development, consistently pushing the boundaries of innovation to deliver cutting-edge solutions to the industry.A first-of-its-kind hybrid excavatorAmong IEPL’s most significant achievements is the development of the pioneering Dual Electric & Diesel Hybrid Excavator—the first of its kind in the construction equipment industry, a breakthrough that even major OEMs have yet to..