Infrastructure lending
The Reserve Bank of India (RBI) has dropped the threshold for partial take-out financing by new lenders to a minimum of 25 % of the outstanding loan from 50 % now. The guidelines for refinancing the project loans were eased to quite an extent and the RBI declared that the reworked loan will not be considered [...] Continue Reading »
Banks can provide infrastructure lending to special purpose vehicles (SPV) on the basis of the guarantees or security provided by a holding company. The Corporate Affairs Ministry has clarified that for loans made by a bank to a subsidiary company, a holding company can (without any limit) give guarantee or provide security. Bankers say that [...] Continue Reading »
