Collateral-Free MSME Loan Limit Doubled To ₹20 Lakh, RBI Pushes Easier Credit For Small Businesses
Published on: Feb. 6, 2026, 11:42 a.m. | Source: Free Press Journal
The RBI proposal to raise collateral-free MSME loan limit from Rs 10 lakh to Rs 20 lakh can improve funding access for small businesses. The move may support business expansion, job creation, and economic growth while reducing lending risk for banks through credit guarantee schemes across India’s growing MSME sector nationwide significantly.
