MUMBAI, Nov. 4 -- Non-bank lenders are redesigning loan products to protect businesses and borrower segments that could be affected by the Reserve Bank of India's proposed restrictions on revolving credit.

Large non-banking financial companies (NBFCs), including Bajaj Finance and Tata Capital, said during their earnings calls for the second quarter of fiscal year 2027 (Q2FY27) earnings calls that they are exploring ways to restructure existing credit facilities as term loans. The aim is to maintain credit supply to segments such as micro, small and medium enterprises (MSMEs) and small businesses, which could otherwise turn to banks for funding.

In a draft dated 6 August, the RBI proposed restricting NBFC lending to term loans, effective...