Kolkata: India, set to emerge as a lending country, may extend a $ 500 million loan to the International Monetary Fund (IMF) for funding the requirements of other developing countries.

The Union Finance Ministry was holding talks with the IMF for extending a 500 million Dollar loan, which would be used for providing loans to other developing nations, official sources said in Kolkata on September 24.

With an 88 billion Dollar foreign exchange reserve, India was poised to turn into a lender country for the IMF, the sources aid.

"The foreign exchange reserve is growing by 300-400 million Dollars per week," they said, adding the growth has been sustained for over last 39 weeks.

The Union Finance Ministry the sources said was planning to use the surplus funds in the forex account for loans to other countries through the IMF.

PTI