Foreign Currency Loan from Union Bank of India
ELIGIBILITY
Exporters for working capital needs
Importers for meeting import obligations
Importers of capital goods
Those customers who have earlier raised medium-term FC Loans for meeting capital expenditure from overseas financial institutions, so that these loans can be foreclosed (subject to RBI guidelines)
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
Those customers who are looking for conversion of rupee term/cash credit.
RATE OF INTEREST
Bench marked to relevant LIBOR rates.
PERIOD
Working capital for exporter/importer- 6 months to one year.
Importers of capital goods-3 years (subject to availability of funds)
Substitution of WCDL/Cash Credit – 6 months to one year.
In case of Term Loan Conversion- 6 months to 3 years (subject to availability of funds)
QUANTUM/ CURRENCY
On transaction to transaction basis within the existing credit facilities
Minimum USD 0.50 mn. (Rs. 2.00 Crores) equivalent.
Normally in US$, FC Loans can also be availed in Pound Sterling or in Euros subject to availability of funds
PROCEDURE
Roll-over at the sole discretion of the Bank
In case of loans on floating rate basis the rates will be reset once in every six months
Interest charged on reducing balance method.
Forward cover for appropriate maturity to be booked.
Forward cover can be waived for customers having natural hedge.
Prepayment generally not permitted
In exceptional cases prepayment permitted. However, as an exception, prepayment is permitted in certain cases, with levy of penalty.
REPAYMENT
Bullet payment (one lump sum) by:
Tendering export documents
Proceeds of export collection bills
Debit to EEFC accounts
Purchase of foreign currency from the bank at contracted/ready rate if forward booking is waived.
Term loans for import of capital goods – repayment in stipulated installments
Conversion of rupee term loans – as per original sanction terms
For details mail to ibd@unionbankofindia.com with Sub: International Trade.
ELIGIBILITY
Exporters for working capital needs
Importers for meeting import obligationsImporters of capital goods
Those customers who have earlier raised medium-term FC Loans for meeting capital expenditure from overseas financial institutions, so that these loans can be foreclosed (subject to RBI guidelines)
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
Those customers who are looking for conversion of rupee term/cash credit.
RATE OF INTEREST
Bench marked to relevant LIBOR rates.
PERIOD
Working capital for exporter/importer- 6 months to one year.
Importers of capital goods-3 years (subject to availability of funds)
Substitution of WCDL/Cash Credit – 6 months to one year.
In case of Term Loan Conversion- 6 months to 3 years (subject to availability of funds)
QUANTUM/ CURRENCY
On transaction to transaction basis within the existing credit facilities
Minimum USD 0.50 mn. (Rs. 2.00 Crores) equivalent.
Normally in US$, FC Loans can also be availed in Pound Sterling or in Euros subject to availability of funds
PROCEDURE
Roll-over at the sole discretion of the Bank
In case of loans on floating rate basis the rates will be reset once in every six months
Interest charged on reducing balance method.
Forward cover for appropriate maturity to be booked.
Forward cover can be waived for customers having natural hedge.
Prepayment generally not permitted
In exceptional cases prepayment permitted. However, as an exception, prepayment is permitted in certain cases, with levy of penalty.
REPAYMENT
Bullet payment (one lump sum) by:
Tendering export documents
Proceeds of export collection bills
Debit to EEFC accounts
Purchase of foreign currency from the bank at contracted/ready rate if forward booking is waived.
Term loans for import of capital goods – repayment in stipulated installments
Conversion of rupee term loans – as per original sanction terms
For details mail to ibd@unionbankofindia.com with Sub: International Trade.