Loan against Bank Deposits
NRIs can avail loan against their NRO, NRE and FCNR(B) Term Deposits for personal purposes or for carrying out their business activities, for making direct investment in India or acquisition of flat/houses in India for their own residential use. Loans are also available to resident individuals/firms/companies against the Term Deposits held by Non-Residents for any type of fund based and/or non-fund based activities subject to compliance of certain guidelines issued by Reserve Bank of India. Non Resident Indians may also avail loans outside India against their NRE/FCNR(B) deposits held with us for themselves or third parties for bonafide purposes through our correspondent banks abroad.
Note : Loans to Non Residents/ Third Party, against security of Non Resident (External) Rupee Accounts (NR(E)RA)/ Foreign Currency Non Resident FCNR(B) deposits
Reserve Bank of India vide its circular A.P (DIR Series) Circular No. 44 dated October 12, 2012 has amended the guidelines relating to Loans to Residents/ Non Residents (self/ third parties) against security of Non Resident (External) Rupee Accounts/ Foreign Currency Non Resident (Bank) Accounts Deposit Rupee loans to be allowed to depositor/third party without any ceiling subject to usual margin requirements.