A government statement said foreign borrowings will be allowed for corporate investment in industry and infrastructure but the money must be parked overseas until actually required.
But restrictions on foreign borrowings for capital market investments and real estate would remain, it added.
The maximum spreads allowed for borrowings would be 200 basis points for average maturity between three and five years and 350 basis points for average maturity of more than five years.
Approval for loans meeting these rules would be automatic for borrowings up to $20 million and maturity between three and five years and up to $500 million for maturity over five years, it added.
The changes also apply to foreign currency convertible bonds, the statement said.