Latest Answer: Hi Mr Akash,
The 5:25 scheme is aimed at correcting an asset-liability mismatch faced by banks wherein banks could not offer long-term loans to infrastructure projects.Banks rarely lend beyond five or seven years, but infrastructure projects can take up to 25 years to be viable.banks can’t raise money for that long a period to fund their requirements. The 5:25 scheme allows banks to think of the project in five-year windows. After that period, the borrower will pay back the loan through takeout financing provided by other banks.
