Bajaj Finance Prepares New Loan Variants Ahead of RBI’s Final Revolving Credit Rules

Disclaimer: The information published on LoansJagat is intended for general informational and educational purposes only and should not be considered financial, legal, or investment advice. Interest rates, loan terms, statistics, and other data may change over time and may vary by lender or source. Please verify the latest information and consult a qualified financial advisor or the respective Bank/NBFC before making any financial decisions.

Customers who rely on repeated withdrawals would face a different borrowing arrangement under these products. Vice Chairman and Managing Director Rajeev Jain also outlined the possible business impact of a complete restriction: temporary pressure on assets under management and marginal compression in margins and profitability. He expects the product changes to broaden Bajaj Finance’s offerings over time.

How Will The New Loans Change Repeat Borrowing?

With revolving credit, customers repay an amount and regain access to funds within their approved limit. Bajaj Finance’s planned variants will work differently. Once customers repay principal, they will not be able to withdraw that money again from the facility. Repayment will reduce the debt without restoring the amount available to borrow.

That difference deserves attention when comparing personal loan options. A borrower seeking money for a particular expense has a different funding requirement from someone who needs repeated withdrawals. Under the announced structure, customers cannot count repaid principal towards money available for their next expense. The repayment amount and remaining borrowing access therefore need separate consideration.

Why Is Bajaj Finance Changing Its Loan Products?

Jain said Bajaj Finance had submitted its comments on the proposal and hoped regulators would find a “middle path." His remarks focused on customer needs, sustainable lending and room for product innovation. Meanwhile, the company had begun preparing alternatives within a term-loan structure, with the November launch forming part of that response.

Management expects a wider product range to help the business respond to regulatory changes. Jain also acknowledged that a complete ban could cause temporary disruption. His comments concerned the company’s response and business outlook. They did not amount to a promise of lower borrowing costs or unchanged withdrawal access for customers taking the new products.

What Separates Revolving Credit From The Planned Variants?

Repayment changes the available borrowing amount differently under these arrangements. The table below compares that feature and records the launch details announced by management.

For customers, the comparison turns on what remains available after a repayment. A smaller outstanding balance shows that debt has fallen. It does not, by itself, show how much the customer may withdraw. Bajaj Finance’s announced variants separate those amounts by removing redraws of repaid principal.

What Does The Change Mean For Borrowers’ Cash Planning?

The practical implication follows from the withdrawal restriction. Money paid towards principal leaves the borrower’s available cash and reduces the debt, but it cannot then be withdrawn again through the same facility. Someone assessing these variants therefore needs to consider the timing of upcoming expenses alongside the repayments.

This is an assessment of the announced feature, rather than a prediction about interest rates. For a defined funding requirement, the comparison involves the amount borrowed and the repayment commitment. For recurring expenses, access between repayments also becomes relevant. A product comparison based only on the monthly instalment would leave out the feature that Bajaj Finance is changing: whether repaid money becomes available again.

What Had Industry Representatives Said Earlier?

The Finance Industry Development Council had raised concerns about restrictions on revolving facilities before Bajaj Finance announced its product plans. In a submission reported on 28 August 2026, the council requested permission to restore borrowing capacity when customers repay principal ahead of the agreed schedule, subject to safeguards.

The council’s concern centred on working-capital funding, particularly for businesses with limited access to bank loans. It argued that restrictions could reduce NBFC participation in this lending. Its proposed approach would retain some repeat access while applying safeguards, addressing the feature that the planned Bajaj Finance variants will remove.

Conclusion

Bajaj Finance is preparing new products around a specific restriction: repayment will not restore access to the principal already paid back. The company’s November launch plan forms part of its response to the proposed rules. Borrowers comparing these variants will need to assess the repayment commitment alongside their need for further withdrawals.

Frequently Asked Questions

1. When Will Bajaj Finance Launch The New Variants?

The planned launch date is 1 November 2026. Bajaj Finance management announced the timetable during its 19 October 2026 earnings call.

2. Can Customers Withdraw Repaid Principal Again?

Customers taking the planned variants will not be able to redraw principal after repayment. Paying down the loan will reduce the debt without restoring that withdrawal amount.

3. Why Is Bajaj Finance Preparing These Products?

The company is preparing alternatives in response to proposed restrictions on NBFC revolving credit. Management intends to introduce additional features within a term-loan structure.

4. Can A Borrower Repay Fully And Keep The Facility For Future Use?

For the newly announced variants, repayment will not make the principal available for another withdrawal. This answer concerns those planned products and does not describe every existing loan agreement.

5. Does A Term Loan Provide The Same Access As Revolving Credit?

The planned variants will remove the redraw feature associated with revolving credit. Customers will repay the borrowing without gaining access again to the principal they have paid back.