Good News for Borrowers! RBI Increases Limit for Loan Against Shares & IPO Funding
The Reserve Bank of India (RBI) has announced a major relief for investors and borrowers. In the Monetary Policy Committee (MPC) meeting held on October 1, 2025, RBI Governor Sanjay Malhotra introduced new lending rules that will boost liquidity and empower investors.
With immediate effect:
- The maximum loan against shares has been raised from ₹20 lakh to ₹1 crore per individual.
- The IPO financing limit has been enhanced from ₹10 lakh to ₹25 lakh per person.
RBI also proposed removing the ceiling on loans against listed debt securities such as corporate bonds, sovereign gold bonds (SGBs), debentures, and green bonds. These changes aim to improve market liquidity, increase IPO participation, and offer borrowers better access to funds.
RBI’s Key Announcements – October 2025 MPC Meeting
1. Loan Against Shares Limit Increased
- Previous Limit: ₹20 lakh per individual
- Current Limit: ₹1 crore per individual
Now, investors can give their equity shares, REITs (Real Estate Investment Trusts), and InvITs (Infrastructure Investment Trusts) as security for larger loan amounts.
✅ Verify Your Loan Eligibility with Credorbit
2. IPO Financing Limit Raised
- Previous Limit: ₹10 lakh per individual
- Current Limit: ₹25 lakh per individual
Investors can now take larger loans to participate in Initial Public Offerings (IPOs). IPO funding is a short-term financing option where allotted shares are used as collateral until repayment.
🚀 Become a Channel Partner with Credorbit
3. Lending Against Listed Debt Securities
RBI has suggested the abolition of the regulatory cap on loans against listed securities.
Eligible Securities Include:
- Corporate Bonds
- Sovereign Gold Bonds (SGBs)
- Debentures & Non-Convertible Debentures (NCDs)
- Green Bonds
This decision enhances borrowing facilities for investors and deepens India’s capital markets.
4. Repo Rate Remains Unchanged
- Repo Rate: 5.5% (unchanged)
This move ensures interest rate stability for businesses and borrowers alike, maintaining a balance between inflation and growth.
📌 Economic Times – RBI MPC Meeting Update
Why This Move is Important for Borrowers
- More Liquidity: Borrowers can now unlock higher amounts against their securities.
- Boost to IPO Market: Increased IPO financing limits will attract more retail investors.
- Diversified Borrowing: Loans against REITs, InvITs, and debt securities provide greater funding flexibility.
- Market Growth: Improved liquidity supports both primary (IPO) and secondary markets.
What is a Loan Against Shares (LAS)?
A Loan Against Shares is a secured loan where investors pledge their shares, bonds, or mutual fund units to a bank or NBFC. Typically, banks lend up to 50% of the value of pledged securities.
With RBI’s updated rules, the maximum limit now stands at ₹1 crore per person, making it a powerful financial instrument for investors.
What is IPO Financing?
IPO Financing allows investors to borrow funds to apply for IPOs without blocking their entire capital.
| Parameter | Earlier Limit | New Limit (2025) |
|---|---|---|
| Loan Against Shares | ₹20 lakh | ₹1 crore |
| IPO Financing | ₹10 lakh | ₹25 lakh |
This update benefits both retail investors and high-net-worth individuals (HNIs), enabling seamless participation in larger IPOs.
Official Statement by RBI
“It is proposed to (a) remove the regulatory ceiling on lending against listed debt securities and (b) enhance limits for lending by banks against shares from ₹20 lakh to ₹1 crore and for IPO financing from ₹10 lakh to ₹25 lakh per person.”
— Sanjay Malhotra, RBI Governor (October 1, 2025)
Conclusion
The RBI’s revised lending guidelines are a game-changer for India’s financial landscape. With higher limits on loans against shares, IPO financing, and listed securities, borrowers gain more flexibility while investors enjoy improved access to funds.
This move strengthens financial inclusion, deepens capital markets, and supports economic growth across sectors. For those looking to leverage their investments smartly — this is the perfect time to explore secured loan options with Credorbit.
FAQs
Q1. What is the new RBI loan limit against shares in 2025?
The loan limit has been increased from ₹20 lakh to ₹1 crore per person.
Q2. What is the IPO financing limit as per RBI’s latest guidelines?
The IPO financing limit has been raised from ₹10 lakh to ₹25 lakh per person.
Q3. Can I borrow against Sovereign Gold Bonds or Corporate Bonds?
Yes, loans can be availed against listed debt securities like SGBs, corporate bonds, green bonds, and NCDs.
Q4. Has the RBI changed the repo rate?
No, the repo rate remains unchanged at 5.5%.
Q5. How does this benefit retail investors?
Retail investors can borrow higher amounts, invest in bigger IPOs, and use their securities as collateral efficiently.
