HDFC seeks RBI nod for foreign currency loan

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HDFC seeks RBI nod for foreign currency loan
HDFC, a leading housing finance provider company has sought permission from RBI for a foreign currency loan under newly relaxed rules relating to offshore borrowings.

According to the reports, HDFC has decided to look towards lenders once it gets an approval from the RBI.

Earlier last year in December, RBI had relaxed the rules governing external commercial borrowings (ECB) and allowed real estate and property developers, as well as housing finance companies and the National Housing Bank to borrow offshore to fund low-cost housing projects.

According to the RBI notification, a low-cost affordable housing project for the purpose of ECB would be a project in which at least 60 per cent of the permissible floor space index (FSI) would be for units having maximum carpet area up to 60 square metres.

Should HDFC's deal materialise, it will be its first offshore borrowing in more than three years since it signed a US$75m three-year club loan in December 2009.

Read more about: hdfc bank
Story first published: Wednesday, February 6, 2013, 10:30 [IST]
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