Mumbai: The revolving credit exposure for non-bank lender Tata Capital is less than 5 per cent, and the company will submit its feedback to the Reserve Bank of India (RBI) on the draft norms, a top official said on Tuesday.
On August 6, the central bank proposed that non-banking finance companies should offer credit products which are like term loans and shall not offer any revolving credit products.
Revolving credit is a loan arrangement where a borrower can repeatedly draw money, repay it, and borrow again up to a set maximum limit. Common examples include credit cards and personal lines of credit.
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On revolving credit exposure, Tata Capital managing director and chief executive officer Rajiv Sabharwal said, "It will be below 5 per cent. It will be less. It's not a big percentage. It's more about a comprehensive product suite, nothing else."
Tata Capital would submit feedback to the regulator on the draft norms governing revolving credit, Sabharwal told reporters here on the sidelines of the FIBAC 2026 conference.
Sabharwal further noted that it was too early to assess the final impact of the proposed regulations.
"The regulator has asked for feedback; we will submit," it said, adding that it was still collating data to determine the specific parameters of its response.
Asked whether there was anything particularly concerning in the draft, Sabharwal said there was "not much" to be concerned about at this stage.
Industry bodies could submit their own feedback on the proposed regulations, while Tata Capital would independently share its views with the regulator, he said.
On August 6, the RBI had added that the restriction shall not apply to an NBFC authorised by the Reserve Bank to issue credit cards.
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The sanctioned limit is disbursed in one or more instalments and is repayable in accordance with a predetermined amortization schedule, either as periodic instalments or as a bullet on the stated due date(s), the draft circular said.
Once disbursed, the sanctioned limit cannot be restored/replenished upon repayment of either the whole or a part of the principal amount, the RBI added.
Regulated entities and stakeholders have to submit feedback and suggestions by August 28 on the draft norms.
