Loan Facilities for NRIs
Loans and overdrafts to NRIs are governed by the rules and regulations made by Reserve Bank of India. Loans are permitted against NRI deposits, shares, securities and immovable properties.
Loans/overdrafts against the security of NRE/FCNR deposits are permitted for personal/business purpose and also for investment on non repatriation basis subject to the terms prescribed by Reserve Bank of India. Loans/overdrafts against the security of NRO deposits can be availed for purpose other than investments. At present loans against NRE/FCNR deposit is restricted to a maximum of Rs. 100L.
Loans/overdrafts can be availed for personal requirements and or for own business purpose against shares/securities, immovable properties (other than agricultural/plantation property or farm houses)
In none of the above case loans will be available for re-lending, carrying out agricultural/plantation activities investment in agricultural/plantation activities or farm house or in real estate business.
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