Ditch VCs – SBI to offer collateral free loan to SMEs (upto 1 Crore)

Surely a good news for startups who are facing tough time raising money – SBI has signed an agreement with credit guarantee fund trust for micro and small enterprises (CGTMSE) to offer collateral free credit upto Rs one crore for SMEs.

The fund is aimed at SMEs in all sectors (except agriculture and retail) and SBI is aiming to disburse nearly one lakh such loans by end-fiscal, with an average ticket size of Rs 3-5 lakh (source)

Also, CGTMSE has tied up with other leading public sector lenders such as Punjab National Bank, Canara Bank, Bank of India, Union Bank of India and United Bank of India to offer collateral-free loans to customers

If you had any experience securing loan from SBI/Banks, please share (and help other startups).

Also check out Indian VC Directory

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