We grant Rupee loans to NRI customers against:-
- Security of funds held in NRO Term Deposits and
- Security of funds held in NRE Term Deposits, FCNR (B) Deposits.
- Against the security of shares or other securities held in the name of the borrower.
Please note that-
- The loan shall be utilized for meeting the borrower’s personal requirements or for his own business purposes; and
- The loan shall not be utilized, for any of the activities in which investment by persons resident outside India is prohibited namely;
- Business of chit fund,
- Nidhi Company.
- Agricultural or plantation activities or in real estate business (excluding development of township, construction of residential/commercial premises, (roads or bridges), construction of farm houses;
- Trading in Transferable Development Rights (TDRs).
- Investment in capital markets including margin trading and derivatives.
- The Reserve Bank’s directives on advance against shares/securities/immovable property shall be duly complied with.
- The loan amount shall be credited to NRO account of the borrower.
- The loan amount shall not be remitted outside India.
shall be made by fresh inward remittances from outside India through normal banking
of the local rupee resources in NRE/NRO/FCNR account of the borrower
sales proceeds of shares or securities or immovable property against which such
loan was granted.
can also be made by adjustment of the deposit.