Ex­porters to Get Long-term Loans

The Economic Times - - Economy -

RBI has al­lowed banks to ex­tend long-term loans to ex­porters with a good track record. “It has been de­cided to per­mit banks to al­low ex­porters hav­ing a min­i­mum of three years of sat­is­fac­tory track record to re­ceive long-term ex­port ad­vance up to a max­i­mum tenor of 10 years,” the RBI said on Wed­nes­day. The in­ter­est rate charged on these con­tracts can­not ex­ceed Li­bor (Lon­don in­ter-bank of­fered rate) plus 200 ba­sis points. Ex­porters would not be per­mit­ted to use this fi­nance to liq­ui­date ru­pee loans, which are clas­si­fied as non-per­form­ing loans. — Our Bureau

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