One Pager-Loan Against Offshore Deposits

Published on January 2017 | Categories: Documents | Downloads: 7 | Comments: 0 | Views: 140
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Offshore Loans Against Deposits
HDFC Bank offers loan against fixed deposits for its customers through its Bahrain Branch. This product is offered to enable customer to have liquidity against their deposits with HDFC Bank branches in India, Bahrain and Hongkong. Permissible collaterals for this loan are as under:1) 2) 3) 4) NRE Deposits – INR FCNR Deposits – USD/GBP/Euro/JPY/AUD/CAD Bahrain Deposits – USD/GBP/CAD/AUD/Euro Hong Kong Deposits – USD/GBP/HKD/Euro

In order to avail this facility the customer needs to have a call account with HDFC Bahrain and is expected to have minimum deposit of USD 50,000.The bank would disburse loan up to 90% of the underlying collateral in case of same currency and up to 75% in case of cross currency. For your convenience, the bank offers loan facility in seven different currencies namely USD, GBP, CAD, AUD, Euro, HKD and JPY. For rates, please contact your Relationship Manager. The minimum and the maximum tenor of the loan would be 15 days and 36 months respectively. The interest servicing of the loan should be done on quarterly basis by the borrower. Considering the currency volatility and cross currency exposure, there would be margin calls for collateral deposits with forward cover booked and incase of cross currency loans. Margin calls can be triggered if the collateral value falls below 110% of the total outstanding in case of same currency and 105% of the total outstanding in case of cross currency. The bank offers a loan rollover feature on this product; this loan would get renewed at market prices at the time of renewal. If the loan is not renewed with 7 days the bank reserves the right to liquidate the collateral. Please note that the underlying FD will be liquidated by the bank under the following scenarios:a) Interest not serviced for 2 consecutive quarters b) Margin call not funded within 15 days c) Loan not repaid on maturity within 7 days This credit facility will not be offered to Bahrain and Hongkong Residents.

*Terms and Condition apply. The disbursal of the loan would be at the sole discretion of the bank based on its credit appraisal. This
facility is governed by RBI and CBB regulations .The bank reserves the right to change the terms and condition of the facility without prior intimation.

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