Are there any regulations governing business loans?

Absolutely, business loans in India are certainly regulated by a significant number of rules and regulations created by the RBI. The RBI published guidelines on digital lending to lenders and service providers in 2025 titled 'Digital Lending Directions which, deal with borrower protection, transparency and accountability for borrowing from digital apps.

Regulatory obligations to users for digital lending include:

• You are required to notify the RBI's Centralised Information Management System of it's registered digital lending apps;
• You are required to disclose all terms of the loans to users (including fees and charges) prior to the user accepting the loan.
• You will define roles and responsibilities with the service provider.
• Digital lenders have to audit or "monitor" the loan portfolio regularly.
• Borrower information must comply with data privacy and security standards.
• Provisions to continuously assess any additional charges imposed by third parties or external service providers.
• A provision for a cooling-off period to allow the borrower to exit a loan penalty-free in a specified time frame.

In addition to the RBI digital lending guidelines, a business loan is subject to the provisions of the Information Technology Act, 2000 (for digital signatures and electronic documents) and various applicable laws. Lenders are expected to follow fair lending practices, anti-money laundering regulations, and consumer protection guidelines.