Wanted: More Flexibility

1. For borrowers who want to capitalise the interest,it could be a reverse step-down, with the interest rates being the highest at the shorter end, and lower later. Needless to say, borrowers are unlikely to find pre-payment attractive in such cases.

2. There could be more flexibility with regard to collateral. For example, the charge on assets could also take into account recourse to group company assets.

3. Unconditional pre-payment could be allowed at least within bands, such as, say, 4-5 years.