RBI's new rules make it easier for Indian firms to borrow
The Reserve Bank of India (RBI) just rolled out new rules for external commercial borrowing, making it simpler for Indian businesses to get loans from overseas.
The changes boost borrowing limits, relax who can apply—even companies in restructuring or under investigation—and set a minimum three-year repayment period.
What's changing?
Now, firms can borrow up to $1 billion or 300% of their net worth, whichever is higher.
There's no more fixed cap on interest rates—everything's market-driven now—so companies can negotiate better deals.
Plus, more types of lenders are allowed, including those at IFSCs and foreign branches.
The big picture: RBI wants to attract more foreign investment and help Indian businesses grow by giving them easier access to global funds.