RBI proposes NBFCs only offer term loan, not revolving credit products
This story was originally published at 19:53 IST on 6 August 2026
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--RBI releases draft to amend norms on NBFCs' credit facilities
--RBI seeks comments on draft norms on NBFC credit facilities by Aug 28
--RBI draft: NBFCs may only offer term loans, not revolving credit
--RBI draft: Revolving credit curbs on NBFCs to not apply to credit-card cos
MUMBAI – The Reserve Bank of India Thursday issued draft directions for credit facilities of non-banking financial companies, under which it proposed that NBFCs be only allowed to offer term loans and not revolving credit products. However, it added that these restriction would not apply to non-banking financial companies authorised by the central bank to issue credit cards.
Revolving credit refers to any fund based credit facility, which does not meet the definition of a term loan. The RBI also proposed to remove demand or call loans from the ambit of the credit policy of non-banking finanacial companies.
The central bank has sought feedback on these draft norms by Aug. 28. Once finalised, the RBI looks to implement the directions immediately. End
Reported by Pratiksha
Edited by Akul Nishant Akhoury
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