Bajaj Finance Ltd. is negotiating the terms of the facility with a group of at least four foreign banks, said the people, who asked not to be identified because the talks are private. The debt term can range from three to five years, and the price is tied to the sovereign overnight financing rate, a common benchmark for transactions in Asia, they added.
The funds will be raised through the Reserve Bank of India. external commercial loans route, which limits the interest rate to 500 basis points above the reference rate.
A Bajaj Finance spokesman declined to comment on the transaction.
Several local shadow financiers are taking advantage of global markets. credit market after the RBI asked banks to increase buffers for consumer loans to curb risky lending. The rule change has made it harder for these lenders to get bank loans, forcing them to look for alternatives in the credit market.
Gold Lenders — Manappuram Financial Corporation Ltd. and Muthoot Financial Corporation Ltd. — and Piramal Capital & Housing Finance Ltd. are among the shadowy financiers that have borrowed abroad this year. HDB Financial Services Ltd., a unit of India’s largest lender by market value, is in the process of borrowing foreign capital. Bajaj Finance, a unit of one of India’s oldest conglomerates, provides loans to buy two- and three-wheeled vehicles made by group company Bajaj Auto Ltd. as well as home appliances. The top-rated company is also in the business of providing personal and mortgage loans.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.