NEW DELHI: In a bid to empower micro and small enterprises, the Delhi government has partnered with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). The collaboration will help small entrepreneurs access loans without collateral while reducing risks for the banks.
The loan guarantee provision under this scheme is shared jointly between the Delhi government and the CGTMSE. According to the proposed guarantee structure, borrowers from different categories will be provided with a guarantee coverage of up to 95%. For small enterprises, loans of up to Rs 10 crore will receive 75% coverage from the CGTMSE and 20% from the Delhi government.
For women entrepreneurs and micro, small and medium enterprises promoted by Agniveers, loans of up to Rs 10 crore will receive 90% coverage from the CGTMSE and 5% from the government. For micro enterprises, loans up to Rs 5 lakh will receive 85% coverage from the CGTMSE and 10% from the Delhi government.
Additionally, for loans between Rs 5 lakh and Rs 10 crore, 75% coverage will be provided by the CGTMSE and 20% by the Delhi government. In this way, the total coverage for all will reach 95%. The CGTMSE was established in 2000 by the Ministry of Micro, Small and Medium Enterprises and the Small Industries Development Bank of India. The CGTMSE currently operates with 276 member lending institutions across the country, with a total guarantee portfolio exceeding Rs 9.34 lakh crore.
In the financial year 2025 alone, it issued guarantees for 27 lakh loan accounts, amounting to Rs 3.05 lakh crore. The scheme will cover sectors including manufacturing, services, retail and education. CM Rekha Gupta hailed the fresh partnership as a new chapter in Delhi’s economic growth, benefitting thousands of entrepreneurs. She emphasised that this Delhi government initiative will empower micro and small enterprises while strengthening the city’s economic framework.
