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Foreign Currency Loans
Features

 

Foreign Currency Loan

ELIGIBILITY

  • Exporters for working capital needs
  • Importers for meeting import obligations
  • Importers of capital goods
  • Those customers who have earlier raised medium-term FC Loans for meeting capital expenditure from overseas financial institutions, so that these loans can be foreclosed (subject to RBI guidelines)
  • Loan to JV/WOS entities of Indian companies.
  •  High value corporate clients with a good track record, to meet working capital requirements in substitution of WCDL
  • Those customers who are looking for conversion of rupee term/cash credit.

PERIOD

  • Working capital for exporter/importer- 6 months to one year.
  • Importers of capital goods-3 years  (subject to availability of funds)
  • Substitution of WCDL/Cash Credit – 6 months to one year.
  • In case of Term Loan Conversion- 6 months to 3 years (subject to availability of funds)

QUANTUM/ CURRENCY

  • On transaction to transaction basis within the existing credit facilities
  • Minimum USD 0.50 mn. (Rs. 2.00 Crores) equivalent.
  • Normally in US$, FC Loans can also be availed in Pound Sterling or in Euros subject to availability of funds

RATE OF INTEREST

  • Bench marked to relevant LIBOR rates.

REPAYMENT

  • Bullet payment (one lump sum) by:
    Tendering export documents
    Proceeds of export collection bills
    Debit to EEFC accounts
    Purchase of foreign currency from the bank at contracted/ready rate if forward booking is waived.
  • Term loans for import of capital goods – repayment in stipulated installments
  • Conversion of rupee term loans – as per original sanction terms

For details mail to ibd@unionbankofindia.com with Sub: International Trade.

PROCEDURE

  • Roll-over at the sole discretion of the Bank
  • In case of loans on floating rate basis the rates will be reset once in every six months
  • Interest charged on reducing balance method.
  • Forward cover for appropriate maturity to be booked.
  • Forward cover can be waived for customers having natural hedge.
  • Prepayment generally not permitted
  • In exceptional cases prepayment permitted. However, as an exception, prepayment is permitted in certain cases, with levy of penalty.
 
We have Current Account with your branch since 2006. We are dealing with the Forex Department and the service rendered by
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