Against NRO Term Deposits :
Loan or overdraft facility Can be availed for self and third party (Subject to RBI guidelines) :
Rupee Loan available to depositors as well as to third parties according to rules applicable to domestic deposits.
Non fund based facilities can be availed.
can be repaid from the maturity proceeds of the deposit, Current income of the NRI depositor in india
Against NRE Term Deposits :
To A/c holder in India :
Loan in INR against term deposits (NRE) held by the NRIs, for personal purposes, purchase of immovable property and business including direct investment on a non-repatriation basis without approval from RBI
Loans in foreign currency can be arranged outside India on security of funds held in NRE accounts, duly hedged by booking forward contract, on interest rates and margin etc. decided at the time of loan.
To third party :
Fund based or non fund based facilities to Resident individuals, firms or companies in India against security of NRE deposits is permitted.
Documents to be executed by depositors only.
Credit facilities to 3rd parties can be granted only when the Depositor himself executes the Security Documents in the presence of Bank officials and witness acceptable to the Bank.
Credit facilities to third parties cannot be granted on the basis of documents executed by PA holders of the depositors.
NOTE: Rate of interest on loan, Margin, etc., will be as per Bank’s policies.
NOTE: Loans either by depositor/third party cannot be availed for agriculture, Plantation, Farm house, Relending, real estate business, Transferable Development Rights etc.,·