Question
Under RBI’s guidelines, what is the maximum
collateral-free loan amount permitted to startups for PSL classification?Solution
Under RBI's PSL guidelines, loans to Startups (as defined by the Ministry of Commerce and Industry) are eligible for priority sector lending classification up to ₹50 crore, though this amount isn't directly tied to a collateral-free limit. While the Credit Guarantee Scheme for Startups (CGSS) provides guarantee cover, the specific collateral-free loan amount is not defined in the RBI's PSL guidelines themselves, but rather in the terms of the guarantee scheme and the specific bank's policies
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