Mumbai, February 9: The Reserve Bank of India (RBI) has announced that micro and small enterprises (MSEs) can now access collateral-free loans of up to ₹20 lakhs. This information was disclosed in a circular released by the RBI on Monday.
The circular states that the RBI has issued revised guidelines for lending to the micro, small, and medium enterprises (MSME) sector, known as the MSME Lending (Amendment) Directions, 2026. These amendments modify certain provisions of the primary guidelines for MSME lending, which were last updated on July 23, 2025.
According to the circular, following these amendments, MSEs will be able to secure loans of up to ₹20 lakhs without the need for collateral. Additionally, some regulatory changes will be separately notified in accordance with these amendments. The central bank has indicated that these revised guidelines will take effect from April 1, 2026.
The RBI further explained that the aim of these guidelines is to enhance loan distribution to micro and small enterprises with limited assets, facilitating easier access to financing.
The government continues to take steps to support MSME industries. Last month, it linked exports conducted through postal channels to export benefits. This initiative will benefit small businesses that utilize postal services for exports.
The Ministry of Communications stated, “The Department of Posts (DoP) has implemented export benefits such as duty refunds, exemptions on exported products, and state and central tax concessions (RODTEP and ROSCTL) for exports conducted through postal channels, effective January 15, 2025.”