Forex loans

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FLAUBERT FRANCIS (Querist)
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28 September 2011 Dear Sir,

Request to explain in detail on the below mentioned caption:

"convert part of rupee loans into low-cost forex loans"

My queries are:
1.By converting rupee loans into forex loans what are the accruing benefits?

2.Is it allowed in India?

3.If YES for sl no 2,then what is the procedure and rules to follow?

4.Is it meant ONLY FOR CORPORATES OR INDIVIDUAL INDIAN CITIZENS CAN ALSO AVAIL THIS OPTION.

5.What will be the rate of interest eligibilty etc., for individuals.

Request full clarification for the above.

Thanks and regards
Francis

Vishal D Shah

Vishal D Shah (Expert)
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29 September 2011 Your query is needed to be personally answered by professional as it is quite exhaustive in nature!. However to explain you the caption, foreign interest rates are much lower than Indian rates and that's primary reason for availing foreign currency loan. You can refer ecb guidelines issued by RBI.