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Air India Requests Interest Rates Cuts on Loans
April 17, 2017
Held back by a pending debt of Rs. 46,000 crore Air India recently wrote to 16 of its lenders to lower the interest rates by up to 2%, in accordance with the dropping interest rates in the banking sector. The Indian flag carrier airline is also consulting with the Ministry of External Affairs and NBCC as it plans to sell 98 of its owned properties based in India and overseas.
According to a senior Air India official, if the request made by Air India is accepted by the lenders then the new interest rate will become 8.5% from the current 10%, and result in total savings in interest costs of about Rs. 200 crores (on loans of about Rs. 15,000 crores) per year.
