How do I get a business loan without collateral in India?
Ask your bank or NBFC for a loan covered by a government credit guarantee, which is what lets it lend without collateral. Register free on the Udyam portal first, since most schemes are for micro and small enterprises. Then pick by size and type. A Mudra loan, for non-corporate, non-farm small units: Shishu up to Rs 50,000, Kishore up to Rs 5 lakh, Tarun up to Rs 10 lakh, and Tarun Plus up to Rs 20 lakh once you have repaid a Tarun loan. A CGTMSE-covered loan, free of collateral and third-party guarantees, for a micro or small enterprise up to Rs 10 crore. Stand-Up India, for women and SC/ST entrepreneurs, bank loans from Rs 10 lakh to Rs 1 crore. A DPIIT-recognised startup borrowing from a bank, NBFC or venture debt fund can be covered by the Credit Guarantee Scheme for Startups up to Rs 20 crore. Bring a business plan, bank statements and GST returns if registered, and keep your credit score clean.
The four MUDRA loan bands for a micro business, given through banks and NBFCs: Shishu up to Rs 50,000, Kishore up to Rs 5 lakh, Tarun up to Rs 10 lakh and Tarun Plus up to Rs 20 lakh.
The scheme document for CGTMSE's guarantee on collateral-free loans to micro and small enterprises by banks and other member lenders, with the Rs 10 crore cap per borrower and the annual guarantee fee table.
The official page for CGSS, which guarantees loans, venture debt and working capital given to DPIIT-recognised startups by banks, NBFCs and SEBI-registered venture debt funds, through NCGTC.
The government's only portal for registering a micro, small or medium enterprise. It states registration is free and lists the revised limits: a micro enterprise has investment up to ₹2.5 crore and turnover up to ₹10 crore, a small one up to ₹25 crore and ₹100 crore.
The site of the trust set up by the MSME Ministry and SIDBI that guarantees collateral-free and third-party-guarantee-free loans made to micro and small enterprises by member lending institutions.
The official portal of the Stand-Up India scheme, which facilitates bank loans between Rs 10 lakh and Rs 1 crore for women and SC/ST entrepreneurs, with handholding agencies to help prepare an application.
