Delhi’s entrepreneurs just got a massive lifeline. Chief Minister Rekha Gupta announced a groundbreaking partnership with CGTMSE, inking an MoU for the Delhi Credit Guarantee Scheme. Aimed squarely at micro and small enterprises struggling with collateral-free financing, the policy was launched Tuesday amid cheers from business leaders.
The core challenge—banks’ hesitation due to high risk—is history. Gupta highlighted how the scheme eases access to up to Rs 10 crore loans sans security, with joint guarantees minimizing lender exposure to 5%. ‘Banks will lend freely, spurring startups across sectors like manufacturing, retail, and education,’ she noted.
Backed by a Rs 50 crore corpus, the fund employs a smart 50:1 leverage to mobilize Rs 2,500 crore in credit. CGTMSE shoulders 75-90%, Delhi government the balance for near-total coverage. A strict 10% NPA limit ensures fiscal prudence, while ambitions soar to empower one lakh beneficiaries—no caps apply.
Prioritizing newcomers and women-led ventures, the initiative promises job surges and economic vibrancy. Sirsa called it transformative for Delhi’s million-strong MSME sector, dismantling barriers like excessive documentation that long plagued access, especially for women. As Delhi eyes developed city status, this scheme fuels sustainable growth and innovation.
