Floating rate of interest
This query is : Resolved
21 May 2012
Urgent !!!
My client has taken loan of 40 crores from Financial institution /NBFC on floating rate of interest. Therefore a minor increase in interest will cause major impact on the financials.
My question: i. Can the interest rate be hedged
ii. What are the ways of hedging it
My client has taken loan of 40 crores from Financial institution /NBFC on floating rate of interest. Therefore a minor increase in interest will cause major impact on the financials.
My question: i. Can the interest rate be hedged
ii. What are the ways of hedging it
21 May 2012
One of the ways to hedge is by entering into floating to fixed interest rate swap with the Bank.
21 May 2012
Dear Sanjay,
Thanks a lot for your prompt response. In India specifically, agencies those do it.Can u name a few ?
Thanks a lot for your prompt response. In India specifically, agencies those do it.Can u name a few ?
21 May 2012
Most of the banks have the treasury cell for hedging activities such as SBI, ICICI, HDFC, etc...
It needs credit limits, RBI submissions and many other complaince requirements.
You may talk to your corporate banker to get more information.
It needs credit limits, RBI submissions and many other complaince requirements.
You may talk to your corporate banker to get more information.
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