The credit risk of the loan to the consumer will be fully taken by the scheduled commercial bank/ financial institution. Refinance from IREDA would be secured by charge on the book debts of the scheduled commercial bank / financial institution. Additional security such as charge on immovable properties / movable properties, guarantee of government, promoter, sponsor bank, etc. in favor of IREDA may be stipulated at the discretion of IREDA. The nature and extent of security will be determined to the satisfaction of IREDA on a case-to-case basis.
Security for loans to borrowers at the primary level
The scheduled commercial banks and financial institutions may have secured the loans extended by them to the primary borrowers by adequate security in accordance with their internal lending norms as approved by their Board of Directors / Competent Authority, in conformity with the applicable guidelines of the Reserve Bank of India (RBI) / other regulators. This may include primary security of adequate value in the form of hypothecation / other charge over the assets financed or, at the discretion of the primary lending institution, security of adequate value in the form of other assets such as receivables, property, life insurance policies, bank fixed deposits, or such other security as may be deemed appropriate to fully secure the loan.