RBI Doubles Collateral-Free MSME Loans to ₹20 Lakh, Boosting Small Businesses

• RBI's MPC meeting announces doubling the collateral-free loan limit for MSMEs from ₹10 lakh to ₹20 lakh.
• This decision aims to provide easier access to funding for small businesses for working capital, machinery, and expansion.
• The loans are covered under the government's Credit Guarantee Scheme (CGTMSE), reducing risk for banks.
• The move is expected to boost the economy, create jobs, and strengthen the supply chain by empowering the MSME sector.
• Eligibility criteria include MSME registration, Udyam Registration number, good credit score, and operational history.