RBI to double loan limit for small businesses

Business Feb 06, 2026

Starting April 2026, small businesses in India can get up to ₹20 lakh in loans without putting up any collateral—double the old limit.
RBI Governor Sanjay Malhotra says this move is all about helping micro and small enterprises get easier access to money, spark new businesses, and support those who don't have big assets.

Boosting jobs and economic growth

This change finally updates a rule that hadn't shifted for years, making sure MSEs aren't left behind by inflation.
It's expected to boost jobs and economic growth, plus steer more businesses away from risky informal lenders.
With extra support from the latest Union Budget and other RBI initiatives on the way, things are looking up for young entrepreneurs and anyone dreaming of starting something new.