BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Infrastructure Finance Company is engaged in business of which of the following?
A
Debts
B
Infrastructure loan
C
Marketing
D
None of the above
Explanation: 

Detailed explanation-1: -Definition: The Infrastructure Finance Company is yet another financial institution engaged in the principal business of infrastructure loan. The credit facility (term loans, project loans, etc.) granted by the non-banking financial companies to the borrowers in the specific infrastructure sectors Viz.

Detailed explanation-2: -For example, toll roads and metro rail projects are considered to be commercial infrastructure projects. They are funded by charging the people who utilize the services.

Detailed explanation-3: -Ans “Infrastructure loan” means a credit facility extended by NBFCs to a borrower for exposure in the following infrastructure sub-sectors: Sl.No. Category. Infrastructure sub-sectors. 1.

Detailed explanation-4: -Capital finance, term loan, project loan, shares are acquired as a part of the project finance package. The banks are involved in the following types of financing for infrastructure projects: Takeout financing-Banks enter into takeout financing arrangements with the help of institutions like IIFCL.

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