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(10/02/2026 12:29)

RBI issues amended directions to boost MSME lending, raises collateral-free loan limit

The Reserve Bank of India on Tuesday issued the Lending to Micro, Small & Medium Enterprises (MSME) Sector (Amendment) Directions, 2026, amending select provisions of the Master Direction – Lending to MSME Sector (updated as on July 23, 2025).

The amendments aim to enhance the collateral-free loan limit for Micro and Small Enterprises (MSEs) to Rs 20 lakh and to align the framework with certain regulatory changes notified separately. The move is intended to strengthen last-mile credit delivery to micro and small enterprises that have limited assets to offer as collateral.

The revised directions will come into effect from April 1, 2026.
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