RBI Boosts MSME Loans: Collateral-Free Limit Rises to ₹25 Lakh

Finance
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CNBC TV18•09-02-2026, 16:04
RBI Boosts MSME Loans: Collateral-Free Limit Rises to ₹25 Lakh
- •RBI issues new guidelines for collateral-free loans to MSMEs, effective April 1, 2026.
- •Mandatory collateral-free loans up to ₹20 lakh for all MSE units and PMEGP beneficiaries.
- •Banks can extend collateral-free limit up to ₹25 lakh based on borrower's credit history and internal policy.
- •Voluntary pledges of gold and silver for loans within the collateral-free limit are permissible.
- •New rules aim to strengthen formal credit access for smaller businesses and boost MSME financing.
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