NHAI gets unsecured loan of Rs 25,000 crore from SBI; MoU to be signed tomorrow

New Delhi: The National Highways Authority of India (NHAI) got an unsecured loan of Rs 25,000 crore from State Bank of India. The SBI loan will be for 10 years with 3 years of moratorium on repayments.

An MoU in this regard will be signed between the two organizations in the presence of Minister of Road Transport Nitin Gadkari in New Delhi on Friday.

There is no principal repayment liability for initial three years. After three years, the repayment would be done in 14 equal half yearly instalments. The total loan tenure is 10 years. NHAI can repay/ prepay it at any time without any prepayment penalty.

“This is the largest amount of loan to have been sanctioned to NHAI in one stroke by any institution. This is also the largest long term unsecured loan sanctioned by SBI at a time to any entity,” an official release said.

“NHAI had invited an Expression of Interest from Scheduled Commercial Banks to fund Rs. 25000 Crore as an unsecured loan for 10 years with 3 years of moratorium on repayments. In response to this EOI, SBI offered to fund the entire requirement of Rs 25000 Crore based on one month MCLR,” the release further added.

The total sanctioned amount of Rs 25000 Crore is to be disbursed within March 31, 2019. Rate of interest would be based on one month MCLR. Interest accrued on the amount actually outstanding will be paid on monthly basis. NHAI can draw the amount in any number of tranches, latest by March 31.