External Commercial Borrowings (ECB)

External Commercial Borrowings (‘ECB’) are Commercial Loans raised by an eligible Indian entity from recognised non-resident overseas lenders in foreign currency or in Indian currency (INR).
In order to raise such a commercial loan from overseas lenders, the Indian entity must comply with the parameters prescribed in the ECB framework in totality, not separately.
The directions/instructions for raising such Commercial Loans by the Indian entity from recognised overseas lenders are governed by Master Direction—External Commercial Borrowings, Trade Credits, and Structured Obligations (as amended from time to time).
Axis Bank caters to your offshore Commercial Loan requirements and offers services related to External Commercial Borrowings (ECB). This includes end-to-end solutions along with document scrutiny, obtaining loan registration no. (LRN), drawdown settlement, loan repayment, debt servicing, regulatory reporting, etc.

Features & Benefits
How it works
Fees & Charges

Features & Benefits

An Indian corporate, eligible to receive foreign direct investment, can also raise ECB from recognised overseas lenders. Benefits of banking with us:

Expert assistance

Dedicated and experienced product experts to assist in advisory, solutioning and resolution of issues.

Support with the Documentation

Assistance in the completion of documents.

Approval assistance

Assistance in the arrangement of approvals from regulatory authorities.

Noc issuance

Issuance of No Objection Certificate for creation of charge on assets.

Investments are categorised into permissible and prohibited modes. Investments that are classified into permissible modes can be processed by following routes:

01
Automatic route: By this route, ECB is allowed without prior approval by Government or RBI
02
RBI Approval route: In this scenario, prior approval from RBI is required for undertaking ECB. (This is applicable for cases not complying with the parameters as given in the regulations).

Modes through which an overseas investment can be made -
The amount of consideration shall be received as drawdown or shall be paid as interest, through banking channels.
Transaction processing steps:

01
Advisory/solutions at pre-deal stage
02
Simplified documentation for obtaining LRN
03
Centralisation of the remittance process to facilitate faster TAT in processing the transaction.
04
Help in seamless monthly reporting of Form ECB 2 and Form ECB (in case of changes in parameters).

Fee & Charges

SOC – Capital Account Transaction

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Disclaimer:

The product offerings are subject to certain eligibility criteria as per Axis Bank's internal policy and are subject to the bank's discretion.

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External Commercial Borrowings (ECB)