Baroda Loan Against Rupee Term Deposit Scheme

• Lower Rate of Interest
• Loan for Business needs
• Get High Value Loans Against Securities
• No need to send money to Foreign WOS/ JV
• Easy Repayment
• No hidden Charges

Limit

• 80% of the Book Value of the Deposit ( i.e. 20% margin )
• Minimum Loan Amount: USD 100,000 or Equivalent in Other Permitted Currency.
• In case of Periodical interest payment on the Deposit amount, margin against deposit at 25%.

Period of Facility

• Up to maximum period of the deposit subject to annual review.
• If Deposit will renew further, Rollover of the Loan may also be allowed, subject to compliance of Margin guidelines.

Repayment

The borrower may repay the loan before Maturity of Term Deposit. In case loan is not adjusted before maturity, loan to be adjusted out of proceeds of Term Deposit.

Rollover of the Loan may be allowed as mentioned above.

• Foreign WOS/ JV of Indian Corporates who are eligible to obtain need-based credit facility in compliance of FEMA/ RBI/ Overseas Regulator Norms and guidelines.

• KYC documents as applicable.
• Last Audited Financials of the Indian Entity as well as Overseas Entity (If Overseas Entity is newly established – Estimated Financials)
• Deposit Receipt duly discharged by the Party/ In case of e- Deposit Certificate, discharge over it.
• Noting of lien on Fixed Deposit and proper confirmation by the Base Branch.
• Undertaking from the company that the proceeds of the facility will utilise for the activity permitted by RBI/ FEMA/ Other regulatory authorities.
• Undertaking to meet shortfall due to adverse Currency Fluctuation.
• Security documents as suggested by the bank’s empanelled Solicitor/Legal Department.

Rate of Interest

6 Months Term ARR + 2.00% p.a. with minimum 2.50% p.a. with Monthly/Quarterly Rests.

Processing Charges

@ 0.25% p.a. with minimum USD 2,500/- at the time of sanction.

Note: In case of non-compliance of the Terms & Conditions of the sanction/ violation of RBI/ FEMA/ Bank’s guidelines by the Company at any point of time, the bank shall immediately adjust the loan by liquidating the term deposit by charging 1% above the applicable Rate of Interest on INR Deposit since 1st disbursement.

• The Indian company should fulfil the Criteria of Automatic route of RBI for investment in WOS/ JV at Overseas Centre otherwise prior approval of RBI required.
• The borrowing company to submit proof of end use of fund within 30 days of 1^st Disbursement
• The Parent company should submit Annual Performance Report in Form ODI Part-II every year containing our charges over the Security and submit the extract of Report after approval from RBI.
• The Parent Company to register our charge with ROC for the Deposit lien mark in our favor.
• Exchange rate will be monitored monthly or more frequently and Company to replenish the shortfall in case of devaluation of INR to keep the margin as per sanction terms otherwise IFSCBU is authorize for premature closure of FDR to adjust the loan.