The State Bank of India (SBI) has agreed to lend Vodafone Essar Rs 100 billion to finance the company's entry into 3G telecom services and expansion of its broadband operations. The five-year loan carries an interest rate of 13.25 per cent for the first two years; thereafter, it will be readjusted on the basis of the average prime lending rate of four public sector banks –­ SBI, Punjab National Bank, Canara Bank and Bank of Baroda. Vodafone Essar is planning to use about Rs 60 billion to expand its telecom network and to prepay part of its previous debt.