RBI Boosts MSME Loans: Collateral-Free Limit Rises to Rs 20 Lakh

• RBI increases collateral-free loan limit for MSMEs from Rs 10 lakh to Rs 20 lakh, effective April 1, 2026.
• Aims to ease credit access for micro and small businesses lacking fixed assets, encouraging new entrepreneurs.
• New 'Tarun Plus' category under Pradhan Mantri Mudra Yojana offers Rs 10-20 lakh loans for eligible entrepreneurs.
• Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE) provides guarantees to banks for collateral-free loans.
• Application process involves Udyam Registration, document preparation, online submission via JanSamarth or PSB Loans in 59 Minutes portals, bank assessment, verification, and final disbursement.