RBI raises collateral-free loan limit to ₹20 lakh for small businesses
pre-market1 source ↓written by the desknot a recommendation
- small businesses
- ₹20 lakh
- ₹10 lakh
- effective
- 01 Apr 2026
The Reserve Bank of India announced an increase in the collateral-free loan limit for small businesses to ₹20 lakh, up from ₹10 lakh, effective from 01 Apr 2026. This adjustment aims to support micro and small enterprises (MSEs) by facilitating improved access to formal credit, crucial for employment generation and economic growth. 📈
The revision, the first since 2010, is intended to address inflationary pressures and enhance entrepreneurial activity within the sector.
Not investment advice. For informational purposes only.