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Can Rupee loans be taken against NRE/ FCNR deposits in India by the depositors himself or to third parties and for what purpose?

April 26, 2017depositors deposits FCNR India Loans NRE Parties purpose rupee

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Can Rupee loans be taken against NRE/ FCNR deposits in India by the depositors himself or to third parties and for what purpose?

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Yes, Rupee loan can be taken against the security of NRE / FCNR deposit in India by depositor himself or to third party. (i) The loan can be taken for personal purposes or for carrying business activities. (ii) For direct investment in India on non- repatriation basis by way of contribution of the capital of India firms / companies. (iii) For acquisition of a flat / house in India for own residential use.