New Delhi, Jan. 28 -- Under the chairpersonship of Rekha Gupta, the Delhi government on Tuesday signed an important Memorandum of Understanding (MoU) with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to provide collateral-free loans to micro and small enterprises.

With this decision, micro and small entrepreneurs in Delhi will now be able to access loans without furnishing guarantees or pledging property-an issue that has long hindered small business growth. The Delhi government described the move as a permanent solution to a longstanding financing challenge faced by entrepreneurs.

Under the arrangement, CGTMSE will provide a guarantee cover ranging from 75% to 90%, while the Delhi government will extend addi...