What is it ?

In simple words, FCTL is the replacement for Term Loan in INR.

Term Loan in Foreign Currency for a tenor of 1 Year to 5 Years.

Funds Availability, Pricing and Tenor of FCTL is purely the function of FCNR Deposits with the bank.

It is Financially advisable to the client(s) who have regular exports and are naturally hedged (Ideally should have recurring / running business for Fx Inflows).

Thus, a regular Exporter can repay through Export receivables.

Interest on FCTL in USD can be serviced through receivables in USD only.

Exports should be regular in nature and also part of those export receivables should be un- hedged so that the same can be used for repayment of FCTLs.


  •     Low cost funds as compared to INR loans
  •     Exporters have export receivables and are naturally hedged. Both principal and interest can be repaid from export proceeds.

For what Purpose

  •     Fresh long term funding requirement.
  •     Takeover of existing INR term loan exposure.
  •     Overseas acquisition/term loan for capital imports.


Regular exports in the past.

Security/Collateral in the form of FD/Commercial Property/Residential Property/Industrial Property.