SREI Infrastructure Finance today said it had been classified as Infrastructure Finance Company (IFC) by the Reserve Bank.
It has been classified by the RBI as IFC within the overall classification of 'Non-Banking Finance Company, SREI Infrastructure Finance informed the Bombay Stock Exchange.
IFC status provides more flexibility in terms of accessing debt and providing loans to the infrastructure sector compared to other lending agencies.
An IFC can provide loans to any single borrower more than 10% of its owned fund while banks cannot.
At the same time, such non-deposit taking NBFCs can lend a single group of borrowers beyond 15 per cent of its owned fund.
If a company wants to be classified as IFC, it should have a minimum of 75% of its total assets deployed in infrastructure loans and it should have net owned funds of Rs 300 crore or above.
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