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Bank can extend collateral free loan up to Rs 25 lakh to MSEs with good track record

Public Lokpal
February 09, 2026

Bank can extend collateral free loan up to Rs 25 lakh to MSEs with good track record


MUMBAI: The RBI on Monday said banks can extend collateral-free loans up to Rs 25 lakh to Micro and Small Enterprises (MSEs) units on the basis of their good track record and financial position.

The Reserve Bank of India (RBI) has amended the directions related to 'Lending to Micro, Small & Medium Enterprises (MSME) Sector'.

The amendments have been carried out to enhance the extant Collateral-Free Loan Limit for Micro and Small Enterprises (MSEs) to Rs 20 lakh, it said.

PTI