The Delhi government has decided to offer collateral-free loans worth up to Rs 10 crore to city-based entrepreneurs in a major boost to micro and small enterprises. Delhi Government Offering Collater-free Loans In this regard, the Chief Minister Rekha Gupta, along with the Industries Minister Manjinder Singh Sirsa, signed a Memorandum of Understanding (MoU) with Central government entity Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). The government has allocated a fund of Rs 50 crore for service loans worth Rs 2500 crore without the need of any collateral, Gupta explained at the event. Moving ahead, the CM said that there was no cap on the number of beneficiaries even as a target of one lakh was set initially. The Centre plans to extend 75-90% guarantee to cover the loan, while the Delhi government will provide the remaining guarantee, under this scheme. In addition to this, the scheme will cover all small and micro sectors such as manufacturing, service and retail. To keep its financial liability in check, the Delhi government has also set the non performing assets (NPA) limit at 10%. A 50-fold Leverage To The City-based Entrepreneurs “There are lakhs of traders, manufacturers and young entrepreneurs… Read MoreBusiness Archives – Trak.in – Indian Business of Tech, Mobile & Startups
