Overview of RBI Corporate Loan Rules 2025

The Reserve Bank of India (RBI) has introduced updated corporate loan rules for 2025 to enhance transparency and financial stability. As of 12:58 AM IST, July 04, 2025, Loanpao provides insights into these regulations to help businesses comply and access funding. This section outlines the key changes and their implications.

Key RBI Corporate Loan Regulations

Significant rules effective in 2025 include:

  • Interest Rate Caps: Maximum rates set at 12% for corporate loans.
  • Loan-to-Value (LTV) Ratio: Limited to 75% for secured loans.
  • Repayment Tenure: Maximum 10 years for large corporate loans.
  • Credit Risk Assessment: Mandatory use of AI-based credit scoring.
  • Disclosure Requirements: Detailed reporting of loan utilization.

These rules aim to reduce non-performing assets (NPAs) by 15% in 2025.

Impact on Corporate Borrowers

The new RBI guidelines affect businesses as follows:

  • Lower Costs: Capped interest rates benefit mid-sized firms.
  • Stricter Eligibility: Higher credit score thresholds (minimum 650).
  • Improved Access: Simplified processes for compliant companies.
  • Monitoring: Regular audits mandated by RBI.
  • Penalties: Fines for non-compliance up to ₹10 lakh.

Loan Options with Loanpao

Loanpao offers corporate loans aligned with RBI rules:

Loan Type Interest Rate Loan Amount Tenure
Working Capital Loan 8% - 10% ₹10 lakh - ₹50 lakh 1-3 years
Project Finance Loan 9% - 11% ₹50 lakh - ₹5 crore 5-10 years
Equipment Financing 7% - 9% ₹5 lakh - ₹2 crore 3-7 years

Note: Rates subject to RBI compliance and credit evaluation. Contact Loanpao for details.

Eligibility and Application Process

To qualify for corporate loans with Loanpao under RBI rules:

  • Business Age: Minimum 3 years of operation.
  • Turnover: Annual turnover of at least ₹1 crore.
  • Documents: PAN, GST returns, and financial statements.
  • Credit Score: Minimum 650 required.
  • Compliance: Adherence to RBI guidelines.

Apply online with Loanpao, with approval within 5-7 days.

Frequently Asked Questions

New rules include interest rate caps, LTV ratios, and enhanced credit risk assessments.

Businesses with 3+ years of operation and a turnover of ₹1 crore+.

Approval typically takes 5-7 days after document submission.