Rbi norms For foreign loans

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tarin shah (Querist)

06 February 2009 hi.

I want to know which are rbi norms to be followed in order to avail foreign loans (ECBs) by an indian company.Please also provide the RBI circular stating it..do reply fast , as its urgent...//

regards,
Tarin Shah

Neha Singhi

Neha Singhi (Expert)

06 February 2009 Hi,

There is a Master Circular on External Commercial Borrowings and Trade Credits by RBI. The following presentation might give you a brief idea https://www.nehasinghi.com/archives/foreign-investement-india.

Rgds
Neha

tarin shah

tarin shah (Querist)

06 February 2009 thanks but i do need the norms which are to be followed by indian companies( different as per sector) in order to take foreign loans...please do reply fast...

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

20 July 2025 The Reserve Bank of India (RBI) has issued guidelines for External Commercial Borrowings (ECBs), which are foreign loans by Indian companies. The guidelines are governed by the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 and are regulated by the RBI. Eligible borrowers include Indian companies, SEZ units, NGOs, and NBFC-MFIs. ECBs must be from recognized foreign lenders such as international banks, export credit agencies, multilateral/regional financial institutions, foreign collaborators or suppliers, and foreign equity holders. The amount limits and routes for ECBs are up to USD 750 million/year for most corporates and up to USD 200 million for hotels, hospitals, and software. The minimum average maturity required is 3 years for most, 5 years from foreign equity lenders for general purposes, and 1-7 years based on sector and borrower type. ECB proceeds cannot finance real estate, capital market investments, equity investments, working capital or general corporate purposes, or repayment of INR loans. Borrowers must obtain a Loan Registration Number (LRN) from the RBI before drawing ECB and submit monthly and annual returns to the Directorate of Statistics and Information Management (DSIM). Non-compliance with ECB guidelines may lead to penalties under FEMA.

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