SBI signs $ 1 billion loan agreement to finance Japanese automakers in India
The loan with JBIC is intended to promote a smooth flow of funds for the overall business operations of Japanese automakers in India.
The State Bank of India (SBI), the country’s largest commercial bank, has signed a $ 1 billion loan agreement with the Japan Bank for International Cooperation (JBIC).
Of the total amount, $ 600 million will be funded by JBIC and $ 400 million by other participating banks. JBIC will provide a guarantee for the part co-financed by the participating banks.
The loan is intended to promote a smooth flow of funds for all of the business activities of Japanese automakers in India.
On the occasion of signing the agreement, Deputy Managing Director of SBI, International Banking Group, C. Venkat Nageswar said: “This is a historic opportunity for SBI and JBIC, as for the first time we are entering into a ready to help realize our Prime Minister’s vision of making India “Aatmanirbhar”.
JBIC is a policy-oriented financial institution, 100% owned by the Japanese government, with the objective of contributing to the healthy development of Japan, the international economy and society.
Masayuki Tanimoto, Managing Director of JBIC, said: “According to one of the surveys, India is the most favored nation for Japanese investment and this is one more step towards strong relations between Japan and the United States. India.
The SBI recently announced a reduction in mortgage rates of up to 25 basis points. Consequently, an interest concession of 25 basis points will be granted for the purchase of houses over Rs 75 lakh, on the basis of the “CIBIL score and via YONO” (application).
As an extension of its recently announced festive offers, the SBI has offered credit score-based concessions of up to 20 basis points against 10 basis points previously, for a home loan above Rs 30 lakh at 2 crore. of Rs across India.
“The same concession would also be applicable to home loan clients for a loan amount of up to Rs 3 crore in eight metropolitan cities,” the lender said in a statement.
“An additional concession of 5 basis points for all home loans is granted if applied through ‘YONO’.”
The lender has already announced a host of special offers for its retail clients with 100% exemption from processing fees on auto, gold and personal loans.