Archive · 31 Jul 2025
Finance Ministry Announces Concessional Rate for NaBFID Guarantees
The Indian government is making it cheaper for a bank called NaBFID to borrow money for building infrastructure projects.
The government will provide guarantees, meaning they'll back up the loans.
The fee for this guarantee is now only 0.1%.
NaBFID helps fund big projects like roads and bridges.
Recently, financial rating agencies gave NaBFID good ratings, showing it's financially stable.
These ratings will help NaBFID get loans from other countries at better rates.
Finance Ministry notified a 0.1% concessional rate for government guarantees to NaBFID.
The rate applies to borrowings from multilateral institutions and other specified foreign institutions.
NaBFID, established in April 2021, focuses on infrastructure development financing.
Moody's Ratings and Fitch Ratings assigned international credit ratings to NaBFID.
These ratings are at par with India's sovereign rating.
- Who
- The Finance Ministry and NaBFID (National Bank for Financing Infrastructure and Development).
- What
- Finance Ministry notified a concessional rate for government guarantees for NaBFID.
- When
- The notification was published on July 31, 2025.
- Where
- India
- Why
- To support NaBFID in accelerating infrastructure development by making it cheaper to secure funds.
- Institution
- NaBFID
- Guarantee Fee
- 0.1%
- Applicable For
- Borrowings from specified foreign institutions
- Established
- April 2021
- Moody's Rating
- Baa3 (Stable)
- Fitch Rating
- BBB-(Stable)