The State-run MTNL has invited expression of interest (EoI) from banks for providing long-term loans of  Rs 1,500 crore to repay its debts and meet operational expenses.

"The loss-making PSU has called for an EoI from public/private banks for providing an offer for long-term loans (secured) of Rs 1,500 crore with a floating interest rate for a tenure of seven years," MTNL said in a statement.

The loan will be raised in tranches as per the requirement within the discretion of the MTNL without any penalty and interest to be calculated for such tranches from the date of raised, it added.

".. floating interest rate for a tenure of seven years with a moratorium period of 3 years on principal repayment with interest payment on monthly basis followed by repayment of loan quarterly in the ballooning pattern," the company said. The opening date of sale of tender document is from July 4 and the closing date and time of sale of tender document is July 11, 2011.