Q1) Can NRIs borrow by pledging Resurgent India Bonds?

A) NRIs now can avail financial assistance in non-repatriable Indian Rupees against the pledge of the Resurgent India Bonds. These loans can be granted in India both to Non-Resident Indians and Resident Indians.

ADCB, India has a scheme for this purpose. Following are the important features of the scheme:

Purpose of loan Any bonafide purpose or for the purpose of investment in India as specifically allowed by existing Exchange Control rules.
Margin A minimum margin of 15% to be maintained at all times.
Interest rate
For bondholder -

For third party borrowers -


Prime Lending Rate plus Interest Tax
Prime lending rate plus 2 % plus interest tax
Period of Loan Not exceeding the unexpired tenure of RIBS
Interest Payment Interest to be charged on quarterly/half yearly rests to the borrower's account.
Disbursement Prior to disbursement, lien confirmation of State Bank of India, Bombay will be obtained by ADCB BOMBAY and loan documentation also has to be completed by borrower.
Mode of Repayment Out of inward remittance from abroad or funds held in NRO/ NRE/ FCNR(B) account of the borrowers or maturity proceeds of the bonds.
Back to Frequently Asked Questions