State Bank of India (SBI), the country’s largest commercial bank, has signed a loan agreement amounting to $1 billion with the Japan Bank for International Cooperation (JBIC).
Out of total amount, $600 million will be financed by the JBIC and $400 million by other participating banks. JBIC will provide a guarantee for the portion co-financed by the participating banks.
The loan is intended to promote smooth flow of funds for the whole range of business operations of Japanese automobile manufacturers in India.
On the occasion of signing the agreement, SBI's Deputy Managing Director, International Banking Group, C. Venkat Nageswar said: "It is a historic occasion for both SBI and JBIC, as for the first time we are entering into an untied loan. This will assist in achieving our Prime Minister's vision of making India ‘Aatmanirbhar'.
JBIC is a policy-based financial institution, wholly owned by the Japanese government, with the objective of contributing to the sound development of Japan, the international economy and society.
Masayuki Tanimoto, Managing Executive Officer of JBIC, said: "As per one of the surveys, India is the most favoured nation for Japanese investment and this is one more step towards strong relationship between Japan and India."
SBI had recently announced concession in home loan rates by as much as 25 basis points. Accordingly, an interest concession of 25 bps will be provided for buying homes of above Rs 75 lakh, based on 'CIBIL score and through YONO' (app).
In an extension of its festive offers announced recently, the SBI has offered a credit score based concessions of up to 20bps from 10 bps earlier, for a home loan of above Rs 30 lakh to Rs 2 crore across India.
"The same concession would also be applicable for home loan customers for a loan amount of up to Rs 3 crore in eight metro cities," the lender said in a statement.
"An additional 5 bps concession for all home loans is given if applied through 'YONO'."
The lender has already announced a slew of special offers for its retail customers with 100% processing fee waiver on car, gold, personal loans.