# RBI Proposes Term Loans Only for Most NBFC Credit Products 2026-08-06T17:55:32+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet The Reserve Bank of India has proposed barring non-banking financial companies from offering revolving credit, allowing only term-loan products under draft amendments to its Credit Facilities Directions. The proposal would affect flexi loans, overdraft-style products and reusable digital credit lines, which let borrowers draw and repay funds within a sanctioned limit. The draft defines a term loan as a fixed facility repaid through a predetermined schedule, with a limit that cannot be restored after repayment. Credit facilities outside that definition would count as revolving credit. The restriction would not cover NBFCs authorised to issue credit cards. The Times of India also reports that the draft removes provisions governing demand and call loans, including a board-policy requirement. ## Coverage - bfsi.economictimes.indiatimes.com - timesofindia.indiatimes.com Tags: credit, fintech, lending, NBFCs, RBI Canonical: https://indianopinion.org/rbi-proposes-ban-on-nbfc-revolving-credit-products/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/rbi-proposes-ban-on-nbfc-revolving-credit-products/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.