Well, attaching collateral for SME loans is not necessary. One can easily apply for small business loans and the bank will not deny your loan application in the absence of any collateral. As we all know that there are two types of loan i.e. secured and unsecured. It may be possible that for the security purpose, your bank will ask for collateral and at that time, you have to attach the same. All and all, there is no hard and fast rule of attaching collateral for applying small business loans
and to some extent, it depends on the bank that whether they would ask for this or not. Maybe the bank will not demand collateral but still one has to attach some of the important documents such as project report, credit information report etc so as to apply for the loan.