GREEN LOANS BY BANKS: OPPORTUNITIES AND CHALLENGES

AUTHOR: R. MADHUMITHA* & DR. S. MARUTHAVIJAYAN**

* STUDENT AT SCHOOL OF EXCELLENCE IN LAW, THE TAMIL NADU DR. AMBEDKAR LAW UNIVERSITY. EMAIL – MADHU2005RM@GMAIL.COM

** ASSISTANT PROFESSOR, SCHOOL OF EXCELLENCE IN LAW, THE TAMIL NADU DR. AMBEDKAR LAW UNIVERSITY. EMAIL: MARUDHU.LAWYER@GMAIL.COM

BEST CITATION – R. MADHUMITHA* & DR. S. MARUTHAVIJAYAN, GREEN LOANS BY BANKS: OPPORTUNITIES AND CHALLENGES, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (4) OF 2025, PG. 1059-1067, APIS – 3920 – 0001 & ISSN – 2583-2344.

Abstract:

In India, Green loans, are one of the type of financing that supports environmentally friendly projects. And nowadays it’s gained attention among people in recent years. Green loans, also known as sustainable or environmentally friendly loans, are financial products offered by banks that support projects aimed at improving environmental sustainability. They are providing green loans to individuals, businesses, and governments. This research paper explores the concept of green loans, their benefits, and the challenges faced by banks and borrowers in the green loan market. The paper also discusses some of the initiatives taken by India and other countries and potential solutions to address these challenges, such as developing standardized frameworks, providing incentives, and enhancing risk management practices.

Keywords: green loans, sustainable finance, environmental protection, banking, challenges.