NHAI signs MoU with SBI for an unsecured loan worth Rs 250 billion

NHAI has signed an MoU with the State Bank of India (SBI) for an unsecured loan worth Rs 250 billion. The loan will be for a period of 10 years with a three-year moratorium on repayments. It is the largest loan amount to have been sanctioned to NHAI by any institution at a time. The loan is unsecured, which implies that there is no principal repayment liability for the initial three years. After three years, the repayment will have be done in 14 equal half-yearly instalments. While the total loan tenor is 10 years, NHAI can repay/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. Interest accrued on the amount which is actually outstanding will be paid on a monthly basis. NHAI can draw the amount in any number of tranches, latest by March 31, 2019.