Updated By: LatestGKGS Desk
NHAI & SBI Sign MoU for Long Term, Unsecured Loan of Rs 25,000 crore Details Purpose
NHAI & SBI Sign MoU for Long Term, Unsecured Loan of Rs 25,000 crores: Details, Purpose, About
National Highways Authority of India (NHAI) has signed a Memorandum of Understanding (MoU) with country’s largest lender State Bank of India (SBI) for the long-term unsecured loan of Rs. 25,000 crore for 10 years with 3 years of moratorium on repayments.
This is SBI’s highest long-term unsecured loan to any entity and also largest loan ever sanctioned to NHAI in one stroke by any institution.
The loan sanctioned by SBI is unsecured. It has no principal repayment liability for the initial three years. But after three years, repayment will be done in 14 equal half yearly installments.
The total loan tenure is 10 years. NHAI can repay or prepay it at any time without any prepayment penalty. The rate of interest will be based on the one-month marginal cost of funds based lending rate (MCLR). Interest accrued on the amount actually outstanding will be paid on monthly basis.
About National Highways Authority of India (NHAI)
NHAI is an autonomous statutory agency of Central Government, responsible for management of a network of over 70,000 km of national highways in India.
NHAI was established through NHAI Act, 1988. In February 1995, it was formally made an autonomous body. It is the nodal agency of Ministry of Road Transport and Highways. It is responsible for the development, management, operation and maintenance of National Highways. It is headquartered in New Delhi.
