The Delhi government will offer collateral-free loans of up to Rs 10 crore to women-led startups and self-help groups (SHGs), with the government acting as guarantor, Chief Minister Rekha Gupta announced on Sunday.
The announcement was made at the inauguration of the two-day Mega SHG Mela near Rohini West Metro Station in North-West Delhi, where women entrepreneurs showcased handicrafts, khadi products, crochet work, food items and household goods.
The move is aimed at helping women entrepreneurs and home-run businesses that often struggle to secure large bank loans without property, assets or financial guarantees.
"Delhi Government has made arrangements for collateral-free loans up to Rs 10 crore for women self-help groups and startups, for which the Delhi Government itself will act as guarantor," Ms Gupta said.
She also said the Delhi government plans to provide regular retail space for locally-made products in malls and large shopping complexes across the capital to help women-led businesses reach larger markets.
Why The Announcement Matters
For many women running small businesses from home, getting formal bank loans without collateral remains difficult.
Many women-run businesses in Delhi - from tailoring units and handicrafts to food brands, beauty services and small retail ventures - still rely on personal savings or informal borrowing to expand operations.
Industry reports have repeatedly flagged limited credit access as one of the biggest hurdles faced by women entrepreneurs, especially those operating small or informal businesses.
The Delhi government had earlier also announced a broader collateral-free credit support framework for small entrepreneurs through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
SHG Mela Showcases Local Products
Around 24 self-help groups participated in the mela organised by the North-West district administration near Unity One Mall in Rohini.
Banks and financial institutions were also part of the event as the government pushed for stronger financial inclusion and easier loan access for women entrepreneurs and SHGs.
The Chief Minister said many women running small businesses lack branding, marketing support and wider market access despite the quality of their products.
"People often run after foreign brands, whereas handicrafts, khadi, household products and handmade items made in India are second to none in quality. The only requirement is better branding and marketing," she said.
'Vocal For Local' Focus
Ms Gupta linked the initiative to Prime Minister Narendra Modi's "Vocal for Local", "Atmanirbhar Bharat" and "One District, One Product" campaigns, urging people to support locally-made goods.
Products developed under the "One District, One Product" initiative of North-West Delhi were also displayed at the event.
The Chief Minister said India is moving towards greater self-reliance across sectors including manufacturing, agriculture, defence and space, adding that Indian-made products are increasingly finding markets abroad.
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