External commercial lending permits resident Indian entities and banks to fund overseas investees, trade customers, and foreign branch employees. Lending to borrowers outside India by persons resident in India is permitted through External Commercial Lending in specified foreign-exchange ... Summary
External commercial lending permits resident Indian entities and banks to fund overseas investees, trade customers, and foreign branch employees.
Lending to borrowers outside India by persons resident in India is permitted through External Commercial Lending in specified foreign-exchange transactions. Authorised dealers and eligible entities may lend to foreign entities in which overseas direct investment has been made, while foreign branches of Indian banks may lend in the normal course of banking business. EEFC-account funds may be lent for trade-related purposes to overseas importer customers subject to stipulated conditions. Indian companies may also lend to employees of overseas branches for personal purposes under applicable staff welfare schemes or loan rules.
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