The purpose of this study is to empirically examine how green lending concept has affected the credit risk management of enterprises in a number of banks in the UK and India. This includes green lending policy framework, the level of practices and their variance across Indian and UK banks. To accomplish these aims and objectives, the researcher exploits data on online portals, bank customers and stakeholders using mostly quantitative methods. The data collected is further analyzed using several statistical techniques including paired samples t-test, correlation analysis and the generalized linear model regression. The results of these techniques show some significant differences between the banks and financial indicators related to their green lending practices. Presented results indicate that UK banks have achieved a significantly higher rate of the green loan ratio than Indian banks, indicating more developed green finance frameworks. Thus, the differences in the institutional, regulatory and firm characteristics affect the green loan and credit risk impingement on agreement or disagreement. This research contributes to the viability of knowledge on sustainable finance and is beneficial for policymakers, regulators and banking institutions to establish relevant procedures and schemes on the role and salience of their institutional characteristics to be accounted. Evidently, in India, green lending and credit risk can be dependent on institutional characteristics such as the company’s age, size, and board of directors.