Delhi Boosts Women-led Startups With 10 Cr Collateral-Free Loans

By: Women Entrepreneurs Review Team | Tuesday, 19 May 2026

Delhi has successfully cleared a new Delhi Women Startup Loan Scheme which has the potential to change the startup landscape of the capital. Women entrepreneurs of startups and women self-help groups will be given collateral-free loans of up to Rs 10 crore, announced Chief Minister Rekha Gupta. The Delhi government will provide the guarantee, with the intention of helping to create bigger brands and business models.

Many of the women in India are interested in starting a business but lack resources of finance, according to the economists. Most new founders do not have the security that banks are looking for. This scheme aims to fill that gap and may give women-led businesses a head start on established businesses in Delhi and elsewhere.

Applicants will not have to provide any collateral loan or get a private guarantor under the Delhi Women Startup Loan Scheme. The Delhi government will itself serve as the guarantor for loans made to the eligible persons, Rekha Gupta said. A major debate is whether access to government-backed credit helps to reduce the burden on banks and/or can assist early-stage women entrepreneurs.

There are many women entrepreneurs running small businesses from their homes and local markets but do not get their businesses sustained because of lack of growth. The new window of the loan is designed to provide assistance to startups and self-help groups in terms of scaling up operations. The government hopes to attract more women to formal finances by eliminating collateral demands and moving them up to medium or large businesses.

KEY HIGHLIGHTS:

• Delhi launches 10 crore collateral-free loans for women entrepreneurs
• Govt to act as guarantor, easing access to startup funding
• The scheme aims to scale women-led businesses and expand market access

Rekha Gupta shared details of the Delhi Women Startup Loan Scheme while inaugurating a two-day “Mega Self Help Group Fair-2026” in Rohini. The Administration is pursuing the process of women's financial independence “at a large scale”, the Chief Minister said. Many able women are hindered by rigid rules on bank guarantees, Gupta said.

The Rohini fair showcased the women entrepreneurs' contributions already made. Close to 24 self help groups participated in the event showcasing khadi, handicrafts, crochet work, home products and other handmade products. Officials say such fairs enhance the visibility of micro businesses apart from sales and provide direction to policy and improve the self help group network.

In the announcement, Rekha Gupta mentioned Prime Minister Narendra Modi's initiatives “Vocal for Local”, “Atmanirbhar Bharat” and “One District One Product”. The Delhi government is putting efforts into moving local produce to other markets,” said Gupta. The plan is to introduce women-made products in malls and big shopping centres.

This could make many women entrepreneurs from occasional stalls to regular access to big customers. Women that sell primarily in neighbourhood markets can find city-wide buyers. The officials think that credit support will be more closely tied to better market access, which will help to sustain and then grow women's businesses.

While the number of women entrepreneurs continues to grow in India, the availability of funds to such entrepreneurs is still an issue of concern for policy watchers. When you take out a big loan, you'll typically need to put up good collateral—which new businesses don't usually have. With its successful realization, Delhi might see a significant rise in the number of women-led businesses and enhanced women's engagement in the