RBI Doubles Collateral-Free Loan Limit to ₹20 Lakh
Why in the news
The RBI announced steps to push credit to small businesses and real estate.
Key facts
| Measure | Detail |
|---|---|
| Collateral-free loan cap | Doubled: ₹10 lakh to ₹20 lakh |
| Bank lending to REITs | Permitted, 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.