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RBI Doubles Collateral-Free Loan Limit to ₹20 Lakh

7 February 20261 min read
BANKING & FINANCERBI DoublesCollateral-FreeLoan Limit to ₹20Lakh7 February 2026safalsetu.com

Why in the news

The RBI announced steps to push credit to small businesses and real estate.

Key facts

MeasureDetail
Collateral-free loan capDoubled: ₹10 lakh to ₹20 lakh
Bank lending to REITsPermitted, with prudential safeguards
  • Loan limit aim: easier formal credit, less use of informal lenders, more jobs.
  • REIT lending aim: better liquidity and transparency.

About REITs

Real Estate Investment Trusts are regulated vehicles owning, running or financing income-producing property like malls, warehouses and hotels.

Exam angle

  • Number: ₹20 lakh. Full form: REIT = Real Estate Investment Trust.

Test yourself

1. RBI raised the collateral-free loan limit for small businesses to what amount?

The limit was doubled from ₹10 lakh to ₹20 lakh.

2. What does REIT stand for in the RBI's announcement permitting bank lending to such entities?

REIT is a Real Estate Investment Trust, a regulated investment vehicle.

3. Bank lending to REITs was permitted under which condition?

The notes say lending is subject to prudential safeguards.

This topic is part of Daily Current Affairs 7 February 2026 (19 topics).

All topics of the dayDay quizFebruary 2026

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