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. Transport, Energy, Water and Sanitation, Communication, and Social and Commercial Infrastructure are called as the Infrastructure Laon.
As per RBI, any non-banking financial company can be registered as an Infrastructure Finance Company, subject to, these should be a non-deposit accepting loan company and must comply with the following conditions:
- Minimum, 75% of the total assets of the company, should be deployed in the infrastructure loans.
- The company must have a minimum net worth of Rs 300 Crore.
- The capital to risk weighted asset ratio or CRAR of the company should be at 15% with Tier-I capital at 10%.
- The company should have a minimum credit rating of “A” or equivalent of CRISIL, or equivalent to any other accrediting rating agencies.