Foreign Loan Facilitators, FCNR-B Loan Consultants  - India

Foreign Currency Loans

FCNR-B Loans


 Foreign Currency Loan Facility

(for export import as well as Domestic Loan Requirement)

FCNR-B Loan Application

Purpose : Repayment of existing ECB with prior permission of RBI ,Govt. of India.

Repayment of existing Rupee Term Loan
Purchase of indigenous machinery or/and import of capital goods , raw materials.
For Pre-shipment credit in Foreign Currency (PCFC) or Post-Shipment Credit in Foreign Currency (PSFC)
For meeting working capital requirement in Indian Rupees.

Foreign Currency loans are given to Indian corporates as well as multinationals outside India also as per ECB policy guidelines.


US $, GBP , Euro  -- Minimum 1,00,000

Japanese Yen --      Minimum 10 Million

Tenure: Minimum period --   6 months

For import of capital goods-- the period should not exceed 3 years including moratorium period. Normal period is 180 days Usance. In case of substitution of Rupee Term loan, the period is unexpired portion of term loan or 3 years whichever is less.

For import of raw materials or for working capital requirement-- The FCNR-B loan is linked to the MPBF limit and the portion of the loan with equivalent Indian Rupees is earmarked


The FCNR-B loan can be repaid in foreign currency also. The loan for working capital limit may be up to 90% of MPBF   ( Maximum Permissible Bank Finance )

Other Terms: Ascertain processing charges

Ascertain penalty amount in % if loan is not availed within certain period of sanction say 30 days.
Interest Rates are normally linked to credit rating of borrower and are certain basis points over 3 months US Dollar LIBOR.

Interest Rates for Term Loans are normally certain basis points over 6 months USD LIBOR.

The borrower should have natural hedge to cover exchange risk, otherwise it has to take forward cover. Borrowers with sound financials or good ratings may be considered without natural hedge.

Why FCNR-B ? The interest cost may be lower than that of rupee loans

Not necessary for borrowers to approach international money markets to raise foreign currency funds as the same is available in India.

cost of raising foreign currency loans is lower than other routes.


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