Are NRO / NRE/ NRNR account holders eligible for loans / overdrafts against their fixed deposits ?
Ans. Yes, except for the purpose of relending , carrying on agricultural / plantation activities or for investment in real estate business. Loans against NRE fixed deposits can, however, be utilised for investments in India on a non-repatriation basis, in certain specified areas and for acquisition of flats / houses subject to prescribed conditions. Loans against NRE fixed deposit is restricted to maximum Rs. 20 Lakh.