DCGS

The Delhi Credit Guarantee Scheme (DCGS) is designed to help eligible Micro and Small Enterprises (MSEs) in the National Capital Territory (NCT) of Delhi access credit facilities with credit guarantee support. The scheme aims to improve access to business finance and reduce collateral requirements for eligible borrowers through participating Member Lending Institutions, subject to applicable scheme guidelines.

Eligible businesses may be able to access credit facilities of up to ₹10 crore under the Delhi Credit Guarantee Scheme, subject to the applicable scheme guidelines, lender participation, borrower eligibility, and credit assessment. The final sanctioned amount is decided by the participating bank or financial institution.

The scheme provides for guarantee coverage of up to 95% for eligible credit facilities, subject to the applicable DCGS guidelines and the relevant guarantee arrangements. Guarantee coverage protects the lending institution against a specified portion of eligible credit risk; it does not mean that the borrower receives a 95% subsidy or is exempt from repayment obligations.

Eligibility generally depends on the applicable scheme guidelines. Businesses may need to meet requirements such as: Being an eligible Micro or Small Enterprise Having a business located in the NCT of Delhi Holding valid Udyam Registration, where required Meeting the lender's creditworthiness and repayment-capacity requirements Satisfying the applicable business, banking, and documentation criteria Final eligibility is determined by the participating lending institution and the relevant scheme authorities.

Eligible businesses may access credit facilities with reduced or no additional collateral under the applicable DCGS and lender conditions. However, collateral requirements depend on the specific facility, scheme rules, and lender assessment. The lender may still require a primary charge over financed assets, guarantees, or other permitted security.

Eligible Micro and Small Enterprises operating in Delhi may explore DCGS-supported financing, including qualifying manufacturing, service, and trading businesses, where permitted under the applicable scheme guidelines. The business must satisfy the relevant registration, location, activity, financial, and lender-specific requirements.

Commonly requested documents include: PAN and KYC documents of the proprietor, partners, directors, and business, as applicable Udyam Registration certificate GST registration and relevant GST returns, where applicable Business registration and address proof Audited financial statements and income tax returns Recent bank statements Details of existing loans and sanctioned credit facilities Business profile, project report, or funding requirement details, where applicable The exact document checklist depends on the lender, loan amount, and nature of the credit facility.

An existing eligible Micro or Small Enterprise may explore DCGS-supported credit for permitted business purposes, including working capital requirements and business expansion, subject to the scheme's scope and the lender's policies. The bank or financial institution will assess the business's financial performance, existing debt, repayment capacity, and proposed use of funds.

An existing eligible Micro or Small Enterprise may explore DCGS-supported credit for permitted business purposes, including working capital requirements and business expansion, subject to the scheme's scope and the lender's policies. The bank or financial institution will assess the business's financial performance, existing debt, repayment capacity, and proposed use of funds.

DCGS is a credit guarantee mechanism, not a direct cash subsidy to the borrower. A loan sanctioned under the scheme must be repaid according to the agreed repayment terms. The guarantee supports the lending institution's eligible credit exposure, subject to scheme conditions, and does not automatically waive the borrower's liability.

SME Credit Partners provides financial assistance and loan facilitation support to MSMEs seeking suitable business financing options. We can help you understand preliminary eligibility, review your funding requirements, organise documentation, and explore potentially suitable lending institutions for DCGS-supported credit. We are not a direct lender, and final approval, loan terms, security requirements, and disbursement are determined by the participating financial institution under applicable guidelines.