RBI doubles collateral free loan limits for small firms and backs REIT lending

The Reserve Bank of India announced today, February 6, 2026, that it will double the collateral-free loan limit for small enterprises and permit commercial banks to extend finance to real estate investment trusts (REITs). The collateral-free limit for small enterprises is set to increase from 1 million rupees to 2 million rupees, a measure involving Sanjay Malhotra sanjay malhotra that aims to broaden formal credit access across India IN. The central bank confirmed that these revised loan norms will apply to all credit facilities sanctioned or renewed from April 1, 2026.