MUMBAI: Small businessmen will soon be able to get collateral-free loans for up to Rs 10 lakh from banks following an RBI-panel proposal to double the Borrow money with bad credit online
A Reserve Bank panel has suggested doubling the limit of collateral-free loans to Rs 10 lakh for micro and small enterprises (MSEs) and easing credit flow to them.
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RBI encourages collateral free loans for the MSMES. However, private and public banks still ask for the collateral while lending loans to the MSME sector.
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The Reserve Bank of India (RBI) has directed banks not to ask for collateral security for new loans up to Rs 5 lakh from micro,small and medium enterprises (MSMEs).
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Although the Union Budget has promised collateral-free educational loans upto Rs 7 lakh, Although even last year’s RBI directive was for Rs 4.5 lakh limit,
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The Tamil Nadu Chamber of Commerce and Industry has welcome the Reserve Bank of India's directive to banks to increase the limit for collateral free loan for MSMEs
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