Delhi govt to provide ₹10 crore collateral-free loans for entrepreneurs
The Delhi government on Tuesday signed an MoU with central government entity CGTMSE to provide collateral-free loans up to Rs 10 crore to city-based entrepreneurs.
 "Delhi govt to provide ₹10 crore collateral-free loans for entrepreneurs")
The Delhi government on Tuesday signed an MoU with central government entity CGTMSE to provide collateral-free loans up to ₹10 crore to city-based entrepreneurs.
Speaking at the signing of the MoU, Delhi Chief Minister Rekha Gupta termed the move as an important step towards financial empowerment to achieve the goal of a "Viksit Delhi".
She said the Delhi government has set aside a fund of ₹50 crore to service loans worth ₹2,500 crore without the need of any collateral. She said there was no cap on the number of beneficiaries even as an initial target of one lakh was set initially.
She said under the scheme, the Centre will extend 75-90 per cent guarantee to cover the loan amounts and the remaining guarantee will be provided by the Delhi government.
It will cover all sectors, including manufacturing, service, and retail, she said, adding that the Delhi government has set 10 per cent as non-performing assets (NPA) limit to keep its financial liability in check.
"There are lakhs of youths, startups, traders, manufacturers in Delhi who were forced to take rounds of the banks for the loans and were unable to get it due to the requirement of collateral. All of them will now be able to have these security-free loans," Gupta said.
Industry minister Manjinder Singh Sirsa said women and SC entrepreneurs have been provided further relief in the scheme under which about one lakh persons are expected to benefit this year.
It has been also announced by the Chief Minister that the government is ready to increase the number of beneficiaries and the loan amount of ₹2,500 crore, if need be, he said.
The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) was established by the MSME ministry to offer third party credit guarantee to first generation entrepreneurs helping them to set up their micro and small industrial units.
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