RBI;no difficulty standards for NBFCs !
RBI;no difficulty standards for NBFCs !
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RBI or Reserve Bank of India , in a proposal to grow infrastructure projects has no difficulty standards  for NBFCs to refinance such projects and provide longer repayment tenures.

Reserve Bank of India in a notification said that, "NBFCs may refinance any existing infrastructure and other project loans by way of take-out financing, without a pre-determined agreement with other lenders, and fix a longer repayment period, the same would not be considered as restructuring if... such loans should be 'standard' in the books of the existing lenders and should have not been restructured in the past,".

Notification added, “Another condition is that such loans should be substantially taken over from the existing financing lenders. Also, the repayment period should be fixed by taking into account the life cycle of the project and cash flows from the project.”

“In cases where the aggregate exposure of all institutional lenders is minimum Rs 1,000 crore, the refinancing by NBFCs will not be considered as restructuring in the books of the existing as well as taking over lenders if the project has started commercial operation after achieving Date of Commencement of Commercial Operation (DCCO)”- is said

Meanwhile, a lender who has extensive only working assets finance for a "project may be treated as a 'new lender' for taking over part of the project term loan as required under the guidelines".

 

 

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