Foreign Currency Term Loan for Import of Capital Goods

Foreign Currency Term Loans (FCTL) can be disbursed in four currencies viz. US$, Sterling, Euro and Japanese Yen with a maturity period of 6 months to 7 years. It can be repaid by bullet payment or in stipulated instalments or by conversion of rupee term loans, as per the terms of the original sanction.

Different corporates borrow funds for different purposes such as:

  • For working capital requirements in Indian Rupees
  • For the pre-shipment advances/ post shipment advances to the exporters
  • Import of raw materials
  • Import of capital goods
  • Purchase of indigenous machinery
  • Repayment of the existing Rupee Term Loan
  • Repayment of existing ECB's

Following is the eligibility criteria to be able to get the FCTL facility:

  • Exporters for working capital needs
  • Importers for meeting import obligations or capital goods
  • Existing borrowers for foreclosure of the medium-term FC Loans
  • Loan to JV/WOS entities of Indian companies
  • High value corporate clients with a good track record, to meet working capital requirements in substitution of WCDL
  • Borrowers requiring conversion of rupee term/cash credit