Delhi Govt to Offer Up to ₹10 Crore Collateral-Free Loans for Women SHGs, Startups

The Delhi government has announced a major push for women entrepreneurship, offering collateral-free loans of up to ₹10 crore to women-led startups and self-help groups (SHGs). Chief Minister Rekha Gupta said the government will act as a guarantor , removing traditional credit barriers and enabling easier access to institutional finance.

The announcement was made during the inauguration of the Mega Self Help Group (SHG) Mela-2026 in Rohini, where around 24 SHGs showcased handmade products including handicrafts, khadi, crochet items, food products, and household goods. Products under the One District, One Product (ODOP) initiative from North-West Delhi were also displayed.

Alongside financial support, the scheme includes market linkage support , with plans to provide SHGs retail platforms in malls and large shopping complexes across Delhi. The aim is to help women producers reach wider urban markets and scale their income opportunities.

Gupta said the initiative aligns with national campaigns such as ‘Vocal for Local’ and ‘Atmanirbhar Bharat’ , encouraging citizens to prefer indigenous products over foreign brands. She stressed that while Indian handmade goods are of high quality, stronger branding and marketing support is needed to improve competitiveness.

The government has also linked the programme with behavioural initiatives like ‘Monday Metro’ and ‘No Vehicle Day’ , promoting sustainable consumption and reduced fuel use. Similar women-led enterprise models have shown success in other states. In Kerala, the Kudumbashree network has transformed SHGs into large-scale micro-enterprises in food processing, textiles, and services, significantly increasing women’s incomes and employment opportunities.

Tamil Nadu’s SHG-bank linkage programme has enabled women’s groups to access formal credit and evolve into registered micro-enterprises, while Rajasthan’s livelihood missions have expanded women-led producer groups into structured district supply chains.

These examples highlight that combining credit access, market platforms, and branding support can turn SHGs into sustainable women-led businesses. Delhi’s initiative aims to replicate and scale this model in an urban environment, integrating finance with retail access to strengthen women-led entrepreneurship.