Following tighter lending rules in India, many companies have resorted to pledging company shares and assets to investors to secure loans. This is known as promoter financing. One company, Jain Irrigation Systems, struggled for months to secure traditional financing for growth plans but eventually turned to Religare Credit Advisors, pledging shares through a holding company in exchange for a three-year, 15.5% interest loan. While promoter financing helped this one company, experts warn against its use for long term debt due to stock market volatility risks. India's central bank has also taken steps to increase regulation and transparency of promoter financing due to past stock market volatility from share defaults.