India is one of the world’s largest centers for Micro, Small, and Medium Enterprises (MSMEs). These enterprises play a crucial role in the Indian economy, but despite their large number, MSMEs in India suffer from a lack of adequate and timely access to funds. The key reason for this is that banks often view MSMEs as high-risk organizations and are therefore reluctant to lend to them. Also, MSMEs often lack the necessary collateral to get a loan. Therefore, a business loan without security is the best option for them.

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