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How to get a Business Loan cover under UDAAN Scheme
without Collateral

The UDAAN Scheme is an important schemes that every Indian Entrepreneurs and Business Owners
must know about and understand.

UDAAN Eligiblity

Any collateral / third party guarantee free credit facility (both fund as well as non fund based) extended by eligible institutions, to new as well as existing Micro and Small Enterprise, engaged in Manufacturing & Service sector, with a maximum credit cap of ₹200 lakh (Rupees Two Hundred lakh only) are eligible to be covered. Recently, guarantee coverage made eligible to Retail Trade from ₹ 10 lakh to ₹ 100 lakh.


Highlights of UDAAN Scheme

  • Objective of the Scheme: Providing Collateral security and third party guarantee free credit facility upto ₹ 2crore.
  • Expanding the Coverage of the Credit Guarantee Scheme (CGS) to cover MSE Retail Traders segment.
  • Allowing loans with Partial Collateral Security under Credit Guarantee Scheme.
  • Charging Annual Guarantee Fees (AGF) on Outstanding Loan Amount rather than sanction amount under UDAAN.
  • Trust is improving its risk management structure in order to expand the scope of Credit Guarantee Scheme to MSEs.