Select branches are authorised to grant overdrafts on the security of
Shares/Securities/immovable properties held by Non-Resident Indians in the country.
To avail of the loans in India against shares/securities/immovable properties
held by Non-resident Indians in India, the NRI has to comply with/accept the following
conditions:
1)
Shares/securities should be held in the name of the
concerned NRI with the general or special permission of the Reserve Bank of India. In the case of
loans against security of immovable properties (other than agricultural/plantation property or
farmhouse) to persons of Indian origin holding a foreign passport, the properties should have been
acquired with the general or specific permission of the Reserve Bank of India
2)
The loan should be utilised for meeting the borrower's
personal requirements and/or for his own business purposes and not for :
a)
Re-lending or investment in shares/securities/immovable properties, or
b)
Investment in agricultural/plantation activities or farmhouse and in real estate
business (i.e., dealing in land and other immovable property for commercial purposes) either singly
or in association with others
3)
The quantum of loan, margin, interest etc., would be in
accordance with the guidelines issued by the Reserve Bank of India regarding advances against
shares/securities/immovable properties
4)
The loan amount should be retained in India and not
remitted abroad. The loan amounts cannot be credited to NRE/FCNR(B)/NRNRRD account of the
non-resident borrower
5)
The repayment of the loan should be made by the way of
remittances from abroad through normal banking channel or by debit to the NRO/NRE/FCNR(B) account
of the borrower or out of the sale proceeds of the shares/securities/immovable property against
which such loan has been granted