RBI's Green Light: Banks Can Now Lend Directly to REITs, Unlocking Long-Term Funding

• Indian REITs Association (IRA) welcomes RBI's decision allowing banks to lend directly to REITs.
• RBI Governor Sanjay Malhotra announced the policy change, providing REITs access to stable, long-term funding.
• Previously, REITs relied on debt from mutual funds, NBFCs, and institutional investors with shorter tenors (3-5 years).
• Direct bank lending will improve financing efficiency, enable longer-tenor borrowings, and reduce refinancing dependence.
• This move supports portfolio expansion and deepens the formalization of India's commercial real estate market.