MSME Collateral-Free Loan Limit To Double To ₹20 Lakh; Banks May Lend To REITs
The government has proposed to raise the limit for collateral-free loans to MSMEs from ₹10 lakh to ₹20 lakh, a move aimed at improving credit access for small businesses. The existing limit has remained unchanged for a long period, and the proposed enhancement is expected to ease funding constraints and support growth and expansion of MSMEs. Separately, to boost the real estate sector, banks may be allowed to lend to Real Estate Investment Trusts (REITs), subject to specific prudential safeguards. This step is intended to widen financing options for real estate while ensuring financial stability and risk management within the banking system.
The government has proposed to raise the limit for collateral-free loans to MSMEs from ₹10 lakh to ₹20 lakh, a move aimed at improving credit access for small businesses. The existing limit has remained unchanged for a long period, and the proposed enhancement is expected to ease funding constraints and support growth and expansion of MSMEs. Separately, to boost the real estate sector, banks may be allowed to lend to Real Estate Investment Trusts (REITs), subject to specific prudential safeguards. This step is intended to widen financing options for real estate while ensuring financial stability and risk management within the banking system.
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