UNUSED LOANS TO COST FIRMS DEAR

Companies from now on will have to pay a price for unused term loans sanctioned by banks. Banks are working towards incorporating in their loan agreements clauses that would allow them to levy a charge on companies for not utilizing the entire loan amount sanctioned to them. Alternatively, if a company is not willing to pay a charge, banks will remain the right to revoke the unutilized portion of the sanctioned loans. This will form a part of the new terms of sanction for lending to companies.