Government New Scheme: The Delhi government has taken a significant decision, providing major relief to small and medium-sized businesses. Now, businesses in the capital can avail loans of up to ₹10 crore without any collateral or property documents. For this, the Delhi government has formally partnered with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
This initiative will be particularly beneficial for small traders, young entrepreneurs starting startups, and new business owners who previously faced difficulties in obtaining loans from banks.
Memorandum of Understanding Signed
A Memorandum of Understanding (MoU) was signed between the Delhi government and CGTMSE during a program held at the Delhi Secretariat. Chief Minister Rekha Gupta was present on the occasion. She said that a large number of young people in Delhi want to start their own businesses, but their dreams remain unfulfilled due to a lack of initial capital. This new government scheme will largely address this problem. The Chief Minister also said that as businesses grow, new employment opportunities will be created, which will also strengthen Delhi’s economy.
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How the Delhi Credit Guarantee Scheme Will Work
Under the Delhi Credit Guarantee Scheme, when an entrepreneur takes a loan from a bank, a large portion of that loan will be guaranteed by the government. CGTMSE will guarantee 75 to 90% of the loan amount, while the Delhi government will provide a guarantee of 5 to 20%. In this way, up to 95% of the loan given to the bank will be secured. This arrangement will reduce the banks’ risk to only 5%, encouraging them to provide more loans without hesitation.
Which Businesses Will Be Included?
This scheme will benefit the manufacturing sector, service sector, retail trade, educational institutions, training centres, and other small businesses. The government has created a special fund of ₹50 crore for this purpose, through which banks will be able to disburse loans of up to approximately ₹2,500 crore. The government believes that this scheme will give a new lease of life to small industries in Delhi and promote self-reliance.
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Fund Augmentation and Risk Control Mechanism
The government has clarified that the fund amount will be increased if needed. Under the scheme, an investment of ₹2 crore will enable loans up to ₹100 crore. Additionally, a limit of 10 percent has been set for non-performing assets (NPAs) to prevent any additional financial burden on the government. The initial target is to benefit one lakh people through this scheme. However, no upper limit has been set for the number of beneficiaries.
Special Priority for Women Entrepreneurs
The Delhi government has clarified that women entrepreneurs will be given special assistance and priority under this scheme. Any small business owner in Delhi who meets the scheme’s criteria will be provided with a loan guaranteed by the government. Delhi’s Industries Minister, Manjinder Singh Sirsa, and several other senior officials were also present on this occasion.
