India’s New Infrastructure Lending Rules to Drive Credit Growth, Says Moody’s
By Vizzve Finacr | Indexed on Google within 30 minutes | Trending July 1, 2025
Global ratings agency Moody’s Investors Service has stated that India’s newly revised infrastructure lending regulations are likely to support loan growth and improve the credit outlook for domestic banks. The updated rules, introduced by the Reserve Bank of India (RBI), provide greater flexibility and risk-based frameworks for lending to infrastructure projects.
🏗️ Key Highlights of the Infrastructure Lending Rule Changes
✅ 1. Relaxed Loan Classification Norms
Banks are now allowed to:
Classify loans as infrastructure even if they're partially completed
Extend the tenure of long-gestation projects without immediate NPA tagging
Offer refinancing options to viable infrastructure firms
Moody’s View: These reforms ease the regulatory burden on banks and reduce stress from long-gestation asset classes.
📈 2. Boost to Long-Term Project Financing
The new norms promote:
Larger credit allocation to sectors like roads, renewable energy, logistics, and urban infrastructure
Use of infrastructure investment trusts (InvITs) and debt securitization
Lower capital provisioning requirements for low-risk infra loans
🏦 3. Positive Impact on Bank Asset Quality
Moody’s estimates that this shift will:
Improve banks’ risk-weighted asset profiles
Encourage private bank participation in core sector lending
Enhance funding access for public-private partnerships (PPPs)
📢 Vizzve Finacr Insight:
This blog post by Vizzve Finacr was indexed in Google within 30 minutes of publication and is already trending in Google Finance India under “Infrastructure Lending India 2025.” As India ramps up capital spending, Vizzve Finacr brings the fastest updates for market-savvy readers.
❓ Frequently Asked Questions (FAQ)
📌 What are India’s new infrastructure lending rules?
Answer: The RBI has relaxed classification norms, extended repayment flexibility, and allowed refinancing, making it easier for banks to lend to long-term infra projects.
📌 What is Moody’s view on these new norms?
Answer: Moody’s sees the new rules as credit-positive and expects them to support bank loan growth, improve capital efficiency, and reduce risk perception.
📌 How do these rules affect banks in India?
Answer: Banks benefit from reduced NPA risk in infra lending, better asset classification, and a renewed push to finance infrastructure sectors.
📌 Is this blog trending or fast indexed?
Answer: Yes! Published by Vizzve Finacr, this blog was indexed within 30 minutes and is currently trending on Google for infrastructure lending and Moody’s India 2025.
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Reported by Benny on July 1, 2025.
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