Loan in Foreign Currency
Loan in foreign currency will be allowed by Bank to FCNR(B) depositor only for business/personal purposes abroad and not for reinvesting or remitting back into India, at Deposit rate plus 2%. And in case third party loan the interest will be deposit rate + 3%.
Loan to NRI Depositor are allowed for:
- Personal purposes or for carrying on business activities*.
- Direct inv in India on non-repatriation basis by way of contribution to the capital of Indian firms / companies.
- Acquisition of flat / house in India for his own residential use.
Loan to Third Parties are allowed for: Fund based and / or non-fund based facilities for personal purposes or for carrying on business activities*.
* Loans to NRIs/Third Parties cannot be allowed for the purpose of re-lending, Business of Chit Fund, Nidhi Company, Trading in Transferable Development Rights (TDRs), Investments in Capital markets including margin trading and derivatives and for carrying on agriculture or plantation activities or for investment in real estate business.