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image FOREIGN CURRENCY LOANS

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 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.
 

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