28 May 2015
Individual Lender has to obtain a certificate of due diligence from an overseas bank indicating that the lender maintains an account with the bank for at least a period of two years. Other evidence /documents such as audited statement of account and income tax return which the overseas lender may furnish need to be certified and forwarded by the overseas bank. All-in-cost ceilings All-in-cost includes rate of interest, other fees and expenses in foreign currency except commitment fee, pre-payment fee, and fees payable in Indian Rupees. The payment of withholding tax in Indian Rupees is excluded for calculating the all-in-cost. The existing all-in-cost ceilings for ECB are as under: Average Maturity Period All-in-cost Ceilings over 6 month LIBOR* Three years and up to five years 350 basis points More than five years 500 basis points * for the respective currency of borrowing or applicable benchmark In the case of fixed rate loans, the swap cost plus margin should be the equivalent of the floating rate plus the applicable margin. The rate of penal interest should not be more than 2 per cent of the all-in-cost of ECB. See more on the link. https://www.rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?id=8101
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