RBI allows SFBs to lend to MIs, sets fresh LTV ratio norms

ET BureauLast Updated: Mar 31, 2026, 06:15:00 AM IST

Synopsis

The Reserve Bank of India has permitted small finance banks to extend credit to capital market intermediaries. New loan-to-value ratio guidelines have been established for lending against financial assets, including eligible securities. The LTV ceiling for listed shares and convertible debt remains at 60%.

KOLKATA The Reserve Bank of India has allowed small finance banks to lend to capital market intermediaries and has set fresh loan-to-value (LTV) ratio guidelines for lending against financial assets, including eligible securities. The central bank kept the LTV ceiling for lending against listed shares and convertible debt securities at 60%, for lending against equity mutual funds and units of equity traded funds at 75%, for lending against debt mutual funds at 85%. Likewise, LTV for lending against debt securities would be 75-85%, depending on rating of the instrument.

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