Answer Book question
No. The bank must not demand collateral for eligible loans within the threshold; it may still decline for any legitimate credit reason. weak cash flows, poor credit history, incomplete documents, an unconvincing project. Collateral-free removes one obstacle, not all of them.
No. The bank must not demand collateral for eligible loans within the threshold; it may still decline for any legitimate credit reason. weak cash flows, poor credit history, incomplete documents, an unconvincing project. Collateral-free removes one obstacle, not all of them.
An applicant with a CIBIL default from a personal loan is declined. Collateral-free norms do not cure credit history.
whether you may qualify for a norm and creditworthiness are separate tests.
Credit score and history Project viability and DSCR Documentation completeness Sector and bank appetite
Arguing about collateral when the real issue is the proposal.
Ask the bank for the reason for rejection in writing; the collateral-free norm is only relevant if collateral was the stated reason.
Rejection for DSCR below 1.5: fix the project; collateral is irrelevant.
None.
Get the rejection reason Fix the actual problem
Why did the bank reject my business loan even though I offered collateral? What is DSCR and why does the bank care?
Loans, grants & subsidies
RBI directions on MSE collateral-free lending · CGTMSE scheme guidelines · MSMED Act 2006 delayed-payment provisions · MSME Samadhaan portal · Udyam registration portal · Kerala Industries Department scheme documents (verify current terms) Rates, limits and whether you may qualify change. Confirm with the official source. Ask Kerala Rising: Send us the quotation before you pay the advance. Or send us the bank's letter before you sign the mortgage. We will tell you what questions to ask. WhatsApp +1 443 595 9000 · keralarising.com Kerala Rising › Business › Finance · Business 8
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