The National Highways Authority of India (NHAI) on August 3, 2018, signed a Memorandum of Understanding (MoU) with the State Bank of India (SBI) for getting Long Term Unsecured Loan of Rs 25000 crore for 10 years with 3 years of moratorium on repayments.
SBI offered the loan to the NHAI in response to the Expression of Interest invited by the latter from Scheduled Commercial Banks to fund Rs 25000 Crore as an unsecured loan for 10 years with 3 years of moratorium on repayments
1. The total sanctioned amount of Rs 25000 Crore will be disbursed by March 31, 2019.
2. Interest accrued on the amount actually outstanding will be paid on monthly basis.
3. The loan sanctioned is unsecured; there is no principal repayment liability for initial three years.
4. The Rate of interest would be based on one month Marginal Cost of Funds Based Lending Rate (MCLR).
5. NHAI can draw the amount in any number of tranches by March 31, 2019.
6. After three years, the repayment would be done in 14 equal half yearly instalments.
7. NHAI can repay or prepay the loan at any time without any prepayment penalty.
8. The repayment would be made by NHAI in 14 equal half yearly instalments after the three-year moratorium is over.