• Skip to main content
  • Skip to primary sidebar
  • Accounting
  • Banking
  • Business
  • Statistics
  • Economics
  • Finance
  • HR
  • Law
  • Marketing
business-jargons-site-logo

Business Jargons

A Business Encyclopedia

Infrastructure Finance Company

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. 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.


Note:
The company’s request to be recognized as an infrastructure finance company must be advocated by the Statutory Auditor’s Certificate confirming the company’s pattern of the asset as on March 31, of the latest financial year.

Related terms:

  1. Infrastructure Debt Fund Non-Banking Financial Companies
  2. Non-Banking Financial Company-Micro Finance Institution
  3. Asset Finance Company
  4. Non-Banking Financial Companies (NBFCs)
  5. Housing Finance Company

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Top Searches

  • Communication Process
  • Planning
  • 7 C’s of Communication
  • Management
  • International Marketing
  • Business Strategy
  • Effective Communication
  • Insurance
  • Strategic Management
  • Selection Process

Trending Now

  • Group
  • Business
  • Accounting
  • Budget
  • Entrepreneurship
  • Journal
  • Leadership
  • Motivation
  • Communication
  • Stress

New Business Terms

  • Corporate Governance
  • Logistics Management
  • Dividend
  • Quorum
  • Corporate Veil
  • Trade Union
  • Warehouse
  • Mistake
  • Ratification
  • Void Agreement

Categories

  • Accounting
  • Banking
  • Business
  • Business Law
  • Business Statistics
  • Economics
  • Finance
  • HR
  • Marketing

Copyright © 2025 · Business Jargons · Contact Us · About Us · Privacy