The RBI announced an increase in collateral-free loan limits for MSMEs starting April 2026.
The limit has been doubled to help small businesses access easier and faster credit.
This move is aimed at strengthening manufacturing, services, and local entrepreneurs
hip.
MSMEs in Tier-II and Tier-III cities are expected to benefit the most.
Banks and NBFCs welcomed the decision, calling it growth-friendly.
Easier credit access may help small firms expand capacity and crea
te jobs.
The decision aligns with the government’s push for inclusive economic growth.
MSMEs play a critical role in India’s exports and employment generation.
Improved credit flow could reduce dependency on informal lenders.
Experts say the move will support grassroots-level economic activ
ity.