NHAI signs pact with SBI for a long-term unsecured loan to tune of Rs 25,000 crore

The National Highways Authority of India (NHAI) has signed pact with the State Bank of India (SBI) for a long-term unsecured loan to the tune of Rs 25,000 crore. This is SBI’s highest long-term unsecured loan to any entity and also the largest ever loan sanctioned to NHAI. There is no principal repayment liability for initial 3 years. After 3 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. The total sanctioned amount of Rs 25000 Crore is to be disbursed within 31st March 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 31st March 2019.