Crisis-hit Jet Airways (India) Ltd has pledged its fixed deposits (FDs) with various banks, totalling ₹1,500 crore, to borrow ₹225 crore from the State Bank of India (SBI), loan documents reviewed by Mint show.
The airline has the option to borrow more from SBI with the same FDs as security.
The airline decided to borrow against the FDs rather than redeem them because the deposits continue to earn a higher interest than what Jet has to pay to SBI, a person aware of the loan transaction said on condition of anonymity.
