The Reserve Bank of India (RBI) on Thursday proposed banning non-banking finance companies (NBFCs) from offering revolving credit products. “NBFC shall only offer credit products which are in nature of term loans and shall not offer any revolving credit products,” the RBI said in the release. A revolving credit facility is a flexible loan that allows you to draw funds up to an approved limit, repay them, and then re-borrow as needed, with the limit replenishing each time you make a repayment. This may include loans such as working capital or cash credit limits.