Green loan

    ESG & Governance

    A loan whose money must be used for eligible green projects, with tracking and reporting similar to a green bond.

    Green loans follow the Green Loan Principles of the main loan market associations, which use the same four core components as the Green Bond Principles: use of proceeds, project selection, management of proceeds and reporting. In India, RBI's November 2025 Directions set out which activities count as green for banks' green finance and which are excluded, until the national taxonomy is final.

    Related terms