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Tuesday, July 15, 2014

RBI allows banks longer amortization period on infrastructure loans

The Reserve Bank of India (RBI) has notified that banks will be allowed to consider longer amortization periods with respect to loans to the infrastructure and core sectors. This implies that banks will be encouraged to make long term loans (upto 25 years) with the condition of periodic refinancing (every 5 years). However, none of the loans should turn into a NPA during initial years.    

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