The idea is that the loan would be sanctioned in dollars, but would be handed over in rupees.
All repayments would be in rupees too.
This would prevent any changes in the amount to be repaid caused by fluctuating exchange rates.
The loan still has to get the approval of the World Bank, India's central government and the Maharashtra state government.
The loan arrangement was discussed at a meeting between World Bank Country Director for India, Isabel Guerrero, and Maharashtra state government officials on Thursday.
In the last few months, the rupee has appreciated sharply against the dollar from 45 rupees to a dollar to 40 rupees to a dollar.
One of the projects Maharashtra wants help with is the Mumbai Metro project, projected to cost $2.5bn. It is hoping to receive loans of $1.5bn.
The project would connect south Mumbai (Bombay) to the suburbs.
Other projects include rural and urban water supplies, power transmission, technical support for a "vision Mumbai" plan and a possible Public Private Partnership (PPP) in irrigation.
