Explain the conditions under which a bank can grant non-funded facilities to customers (not availing fund based facility from any bank in India).

Banks can grant non-funded facilities including partial credit enhancement to customers, not availing fund based facility from any bank in India under following conditions: Banks are to ensure that the borrower has not availed any fund based facility from any bank operating in India. At the time of granting non-funded facilities, bank to obtain declaration from the customer about the non-funded credit facilities already enjoyed by them from other banks. Banks are to undertake similar credit appraisal as for fund based facilities. Credit information relating to such facility shall be mandatorily be furnished to the Credit Information Companies.