In a major relief to to cash strapped Kingfisher Airlines, Subrata Roy has extended a helping hand by giving a loan of around Rs 750 crore to the struggling airline.

The loan has been extended via inter-corporate deposits (ICD), eventhough the there was no clarity at what interest rate the loan has been given. The deal was directly structured by Vijay Mallya & Subrata Roy as per a report in ET Now by Sameer Hashmi.

Inter-Corporate Deposit (ICD) is an unsecured borrowing by corporates from other corporate entities registered under the Companies Act 1956. The corporate having surplus funds would lend to another corporate in need of funds. This lending would be an uncollateralized basis and hence a higher rate of interest would be demanded by the lender. 

One source said that Sahara may have asked for collaterals to secure the loans, but there was no confirmation for the same. 

SBI Caps, which the airline had hired to assess its business and recapitalisation needs, had in its recent report pegged the Kingfisher Airlines' working capital requirements at Rs 680 crore. 

Lenders have told Kingfisher Airlines to clear its dues before they can release any more money sought by the beleaguered private carrier.The arrears estimated by banks till the end of December are Rs 260-280 crore. Kingfisher Airlines has a massive debt of Rs 7000 crore.