Episode 13 – Collateral in MSME Loans: More Than Just Security

For many entrepreneurs, collateral simply means “giving property papers to the bank.” But in reality, collateral is much more than that. For bankers, it’s not just about security — it’s about confidence, comfort, and credibility.

In this episode of Smart Credit Bytes, I’ll cover:

1. What collateral really means in MSME lending
2. How bankers view collateral — not as repayment, but as risk cover
3. The most common mistakes MSMEs make with collateral
4. Types of collateral beyond just property (FDs, LIC, NSCs, machinery, guarantees, CGTMSE)
5. A smart borrower’s guide to managing collateral wisely

If you’ve ever struggled with the question, “Why does the bank need collateral even if my business is good?”, this episode will clear your doubts.

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Keywords: MSME collateral, bank loans, security, CGTMSE, borrower mistakes, loan approval, MSME finance