Overview

External Commercial Borrowings (‘ECB’) are commercial loans raised by an eligible Indian entity from recognised non-resident overseas lenders in foreign currency or in Rupees.

In order to raise such a commercial loan from overseas lenders, the Indian entity is required to comply with parameters prescribed in the ECB framework in totality and not standalone.

The directions / instructions for raising of such commercial loans by the Indian entity from recognised overseas lenders are governed by Master Direction- External Commercial Borrowings, Trade Credits and Structured Obligations (as amended from time to time).

We, at Axis Bank to cater to your offshore commercial loan requirement offer services related to External Commercial Borrowings (‘ECB’) which includes end-to-end solution along with document scrutiny, obtaining Loan Registration No (‘LRN’), Drawdown settlement, Repayment of loan, Debt-servicing, Regulatory reporting, etc.

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Features &
Benefits

Features & Benefits

  • An Indian corporate eligible to receive foreign direct investment is also eligible to raise ECB from recognized overseas lender.
  • Benefits of Banking with us :
  • imgDedicated & experienced product expert to assist in advisory, solutioning and resolution of issues.
  • imgAssistance in completion of documents.
  • imgAssisstance in arrangement of approvals from regulatory authorities.
  • imgIssuance of No Objection Certificate for creation of charge on assets.

How it works?

Investments are categorized into permissible and prohibited mode. Investments which are classified into permissible mode can be processed by following routes :

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Automatic route: By this route, ECB is allowed without prior approval by Government or RBI
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RBI Approval route: In this scenario, prior approval from RBI is required for undertaking ECB. (This is applicable for cases not complying with the parameters as given in the regulations).

Modes through which an overseas investment can be made -

The amount of consideration shall be received as drawdown or shall be paid as interest, through banking channels.


Steps for smooth processing of the transaction :

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Advisory/Solutioning at Pre-deal Stage
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Simplified documentation for obtaining LRN
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Centralization of remittance process to facilitate faster TAT in processing the transaction.
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Help in seamless monthly reporting of Form ECB 2 and Form ECB (in case of changes in parameters).
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Fee &
Charges

Fee & Charges

SOC – Capital Account Transaction

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Eligibility &
Documentation

Eligibility & Documentation

Please reach out to your nearest branch or contact your relationship manager for further information.

 

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Disclaimer:

Product offering is subject to certain eligibility criteria as per Bank's internal policy and is subject to Bank's discretion