Soon micro, small and medium enterprises (MSMEs) operating in the country will be able to get up to Rs 20 lakh as collateral free loans under the Mudra scheme, reported Business Standard.

The central bank’s expert committee on MSMEs has recommended doubling the cap on collateral-free loans from the existing Rs 10 lakh to Rs 20 lakh, a person privy to the development told the newspaper.

The proposal is part of the report prepared by the 8-member RBI committee headed by former Securities and Exchange Board of India chairman UK Sinha, who is tasked with reviewing the current framework for the MSME sector, said the report.

As per the report, the recommendations by the panel include suggestions such as mainstreaming the restructuring of stressed loans and solutions for the economic and financial sustainability of MSMEs.

First Published:Jun 19, 2019 10:21 AM IST