The Reserve Bank of India (RBI) has proposed draft regulations to shift from revolving credit facilities to term loans for most Non-Banking Financial Companies (NBFCs), impacting how lenders design and manage credit-line products. SwiffyLabs Lending Platform is already equipped to support this new construct.

IN · 2026-08-26

1. Step 1 · The triggerRBI proposes regulations to shift from revolving credit to term loans for NBFCs, aiming for more stability in credit offerings.
2. Step 2 · Knock-onNBFCs adjust their lending products, leading to tighter credit terms and potentially higher interest rates for borrowers.
3. Step 3 · Knock-onSMEs relying on revolving credit face increased borrowing costs and altered cash flow management strategies.
4. Step 4 · Reaches youSMEs may need to shift to term loans to maintain liquidity, impacting their operational flexibility.

The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.

Source: The Hindu BusinessLine

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