State-owned hydro power giant NHPC Sunday said it has entered into agreement with the country's largest lender State Bank of India for a term-loan of Rs 500 crore.

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The borrowed fund will be utilised to finance the capital expenditure, NHPC said in a statement.

"The loan has tenor of 10 years with 3 years of moratorium period and the rate of interest is linked with one year MCLR (currently at 8.50%)," it added.