Question
What does "Infrastructure lending" include as a part of
the project finance package as per RBI guidelines for NBFCs?Solution
"Infrastructure lending" includes credit facilities extended by non-banking financial companies to borrowers by way of term loans, project loans, and subscription to bonds, debentures, preference shares, and equity shares in a project company, as part of the project finance package, such that the subscription amount is "in the nature of advance" or any other form of long-term funded facility for exposure in the infrastructure sub-sectors.
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