Collateral-free loans up to Rs. 20 lakh for small businesses

Collateral-free loans up to Rs 20 lakh for small businesses. This move by the Reserve Bank will be a big boon for micro small enterprises (MSEs) that are unable to provide large amounts of collateral. Currently, it was Rs 10 lakh.

This scheme has been made more generous since 2010. It was increased from 5 lakhs to 10 lakhs in 2010. The scheme will come into effect from April. This step, which will be a great boon for small entrepreneurs, is expected to create new job opportunities. 45% of our exports are contributed by small entrepreneurs.