While strengthening its financial supervision, the Reserve Bank of India (RBI) has started to relax lending standards. Wider access to credit secured by gold, more affordable and flexible loans for borrowers, and simpler capital-raising channels for banks are all promised by its most recent regulations. While four of these modifications have been made available as drafts for feedback, three will go into effect on October 1.

A look at the new rules taking effect from October 1, 2025.

1- All personal, retail, and MSME floating loans will be linked to an external benchmark.

2- Banks will now be able to reduce the spread in three years. This could reduce EMIs.

3- From August 18, 2023, it was mandatory to offer a fixed rate option on EMI loans on every scheduled reset date.

4- From October

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