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Delhi CM Rekha Gupta Signs MoU for Collateral-Free MSME Loans

Delhi Chief Minister Rekha Gupta has signed an MoU with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to provide collateral-free loans to small entrepreneurs. The initiative aims to overcome a major hurdle for MSMEs in accessing credit and is expected to spur innovation and large-scale employment. The announcement was part of a broader report on the government's 11-month tenure, which highlighted a significant increase in Delhi's budget and capital expenditure. The government also aims to strengthen the MSME sector to leverage benefits from the proposed India-EU trade deal.

Key Points: Delhi CM Announces Guarantee-Free Loans for Small Entrepreneurs

  • MoU with CGTMSE for guarantee-free loans
  • Aims to boost MSME sector and job creation
  • Delhi budget increased to Rs 1 lakh crore
  • Capital expenditure doubled for infrastructure
2 min read

Delhi CM signs MoU for guarantee-free loans to small entrepreneurs

Delhi CM Rekha Gupta signs MoU with CGTMSE to provide collateral-free loans to MSMEs, aiming to boost jobs and economic growth in the capital.

"You keep working hard, dream big, innovate - our government stands with you to turn them into reality. - CM Rekha Gupta"

New Delhi, Jan 27

Delhi Chief Minister Rekha Gupta on Tuesday announced a tie-up with the Central government's lending agency for guarantee-free loans for small entrepreneurs in the Capital to boost economic activity and employment.

"Our government has ensured loan arrangements for Micro and Small Enterprises in Delhi without requiring guarantees or collateral," she said.

"Small entrepreneurs often face difficulties in obtaining loans without guarantees, but today the Delhi government has signed an MoU with CGTMSE to provide a permanent solution to this issue," she said.

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is jointly set up by the Ministry of Micro, Small and Medium Enterprises (MSME) and the Small Industries Development Bank of India (SIDBI). Established in 2000, it provides collateral-free loans to Micro & Small Enterprises (MSEs) by offering guarantee cover to lenders, thus boosting credit flow to this crucial sector.

Chief Minister Gupta said the new MoU will also boost job creation in the Capital.

"This will not only boost innovation but also create new employment opportunities on a large scale. At the same time, our women entrepreneurs will receive the respect and resources they deserve. You keep working hard, dream big, innovate - our government stands with you to turn them into reality," said CM Gupta.

Earlier, speaking at the Delhi government's official event on the 77th Republic Day, the Chief Minister presented a comprehensive progress report of her government's 11-month tenure and outlined a forward-looking roadmap for building a 'Viksit Delhi'.

On economic growth, the Chief Minister said that Delhi's Budget has been increased from Rs 75,000 crore to Rs 1 lakh crore.

Highlighting proposals on infrastructure and transport, the Chief Minister said that capital expenditure for 2025-26 has been doubled. An MoU has been signed with the RBI to strengthen financial management.

For development, the government has allocated Rs 1,700 crore for various projects, and it aims to promote the MSME sector to ensure optimal benefit from the proposed India-EU trade deal, she said.

- IANS

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Reader Comments

P
Priya S
Hope the process is truly simple and doesn't get stuck in red tape. Many schemes sound good on paper but are impossible for common people to access. Focusing on women entrepreneurs is especially welcome. Let's see the ground reality.
R
Rohit P
Doubling the budget and capital expenditure is impressive. But the real test is efficient spending. Delhi needs better infrastructure desperately. Hope this loan scheme and the increased funds actually lead to visible development and jobs.
S
Sarah B
The tie-up with CGTMSE is a smart move. It's an existing, established system. Leveraging central government schemes with state support can be very effective. Hope they run good awareness campaigns so every eligible entrepreneur knows about it.
V
Vikram M
"You keep working hard, dream big" - these words are motivating! Many young people in Delhi have ideas but no financial backing. This could be a game-changer for the startup ecosystem here. Fingers crossed for smooth implementation.
K
Karthik V
While the intent is good, I have a respectful criticism. The article mentions a huge budget increase. I hope fiscal discipline is maintained. Loan schemes must have a clear plan for recovery to be sustainable, not become another source of NPAs for banks.
M
Meera T
As a

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