Wed Oct 08 20:10:20 UTC 2025: **FOR IMMEDIATE RELEASE**

**Delhi Government Partners with CGTMSE to Boost Small Businesses with Collateral-Free Loans**

**New Delhi, October 9, 2025** – The Delhi government announced a landmark partnership with the Centre’s Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) today, ushering in a new era of support for the Capital’s Micro and Small Enterprises (MSEs). The collaboration will provide collateral-free loans, empowering small entrepreneurs and bolstering Delhi’s economic growth.

Chief Minister Rekha Gupta hailed the initiative as a “new chapter” for Delhi’s economy, emphasizing that it will enable thousands of small business owners to access formal credit without the burden of providing collateral. The scheme, with a budgetary provision of ₹5 crore for 2025-26, aims to strengthen the Capital’s small business ecosystem by extending to sectors including manufacturing, services, retail, and education. A phased contribution of ₹50 crore is expected in partnership with CGTMSE.

The loan guarantee provision will be jointly shared by the Delhi government and CGTMSE, with borrowers receiving guarantee coverage of up to 95% depending on their category. This includes significant support for women entrepreneurs and MSMEs promoted by Agniveers.

“This initiative will provide targeted support to new enterprises and women entrepreneurs,” said Chief Minister Gupta. The partnership will increase credit flow to the MSME sector, promote job creation, innovation, and economic resilience.

For small enterprises, loans up to ₹10 crore will receive 75% coverage from CGTMSE and 20% from the Delhi government. Women entrepreneurs and MSMEs promoted by Agniveers will benefit from 90% coverage by CGTMSE and 5% by the Delhi government for loans up to ₹10 crore. Micro enterprises can also access significant support, with loans up to ₹5 lakh covered 85% by CGTMSE and 10% by the Delhi government.

CGTMSE, which works with 276 lending institutions across India and has a total guarantee portfolio exceeding ₹9.34 lakh crore, provides guarantees to banks and financial institutions, allowing small enterprises to borrow without collateral.

“The government wants business owners to grow their enterprises without obstacles,” Chief Minister Gupta stated, emphasizing the commitment to fostering a thriving business environment in Delhi.

**About CGTMSE:** The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is an initiative by the Government of India to facilitate credit flow to the MSE sector.

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