Delhi's MoU for a 'Viksit Delhi': Collateral-Free Loans to Empower Entrepreneurs

The Delhi government has partnered with CGTMSE to offer collateral-free loans up to Rs 10 crore for city entrepreneurs. With a Rs 50 crore backup fund, the initiative aims to facilitate Rs 2,500 crore in loans, focusing on financial empowerment and supporting up to one lakh beneficiaries.

The Delhi government has taken a significant step toward enhancing financial empowerment by signing an MoU with the central government entity CGTMSE. This agreement aims to offer collateral-free loans up to Rs 10 crore for entrepreneurs based in the city, with the initial goal of achieving a 'Viksit Delhi.'

Delhi Chief Minister Rekha Gupta announced a Rs 50 crore fund dedicated to servicing these loans, facilitating a loan issuance worth Rs 2,500 crore without requiring any collateral from beneficiaries. The scheme is inclusive of all sectors, including manufacturing, service, and retail, with a focus on maintaining financial responsibility through a set 10% NPA limit.

Further details reveal that a substantial 75-90% of the guarantee for loan amounts will be extended by the Centre, with the remainder covered by the Delhi government. This initiative is expected to benefit one lakh individuals this year, with special provisions for women and SC entrepreneurs, according to Industry Minister Manjinder Singh Sirsa.

(With inputs from agencies.)