Hello, here I m providing you the details of the Collateral Free Loan of Union Bank of India as under:

MSME MARGIN

Collateral Requirements:
Credit assistance to MSEs upto Rs.5 lakhs is extended without any collateral securities

Collateral free financial assistance above Rs.5 lakhs and upto Rs.100.00 lakhs is extended to Micro & Small Enterprises as per operational guidelines

All the eligible collateral free loans extended to Micro & Small Enterprises borrowers are covered under Credit Guarantee Scheme of Credit guarantee Fund Trust for Micro & Small Enterprises (CGTMSE)

In other cases the quantum of collateral coverage is decided based on the activity and risk involved with the activity / promoters

However quantum of collateral is not a hurdle while extending financial assistance to MSMEs in general

Margin Requirements
Normal margin for CC limit remains 25% for Stocks and 40% for Book Debts limit. On Bills limit margin varies from nil to 10%.

With a view to support the MSE sector relaxations in margins to deserving viable MSEs may be considered upto 20% for stocks, upto 30% for Book Debts and upto nil extent in case of Bills facilities

MARGIN, I.E. YOUR SHARE:-
Minimum - 25%.

NATURE OF FACILITY:-
Demand Loan.