New Delhi, Sept. 3: Leading steel producer Tata Steel is in talks with banks to raise loans worth £3.5 billion (over `25,000 crore) for its unit in the UK.

Tata Steel is in talks with 11 banks for loans to the tune of £3.5 billion for the company’s UK unit, a Bloomberg report said.

BNP Paribas SA, Credit Agricole CIB, HSBC Holdings Plc and Royal Bank of Scotland Group Plc are among the banks that may lend £2.5 billion over a period of five years, it said.

According to the report, Citigroup Inc, Deutsche Bank AG, Standard Chartered Plc and ING Vysya Bank Ltd may also provide funds to Tata Steel.

Quoting people familiar with the development, Bloomberg said that State Bank of India may arrange a £1 billion loan over a period of seven years. However, the Tata Steel officials declined to comment on the issue.

Tata Steel chief financial officer, Mr Koushik Chatte-rjee, on August 12 said the steel-maker plans to refina-nce as much as $6.5 billion of long-term debt.