ICICI Bank has launched two new products – Loan Against Deposits (LAD) and Dollar Bonds – for NRI customers at its branch in GIFT City. With this, ICICI Bank has become the first bank to offer these products in GIFT City, which is an emerging global financial and IT services hub based in Gujarat.
“We are offering Dollar Bonds and Loan against Deposits to our NRI customers through our branch at GIFT City. Foreign currency bonds are one of the preferred investment options amongst NRI clients. We want to provide our customers with the ease of banking digitally, driving a seamless journey and a hassle-free experience,” said Sriram H Iyer, Head of International Banking Group, ICICI Bank,
Read More: Elon Musk Puts Relaunch Of Twitter Blue On Hold. Here’s Why
What is Loan against Deposits?
Loan against Deposits (LAD) is like a loan in foreign currency against a deposit in India (including Rupee NRE FDs). ICICI Bank said that customers can avail LAD for their short-term cash requirement without having to prematurely close their Term Deposits and thereby avoid paying a penalty for breaking the deposit.
ICICI Bank customers can avail up to 95% of their deposit value. With a simple documentation process, customers can get flexible tenure with fixed or floating interest rates.
What is Dollar Bond?
Dollar Bonds is an alternate investment option for NRIs, where they can book dollar bonds through ICICI Bank in GIFT City. ICICI Bank said it is offering a cohort of over 50 marquee issuers/companies for these bonds.
Read More: Australian Parliament passes Free Trade Agreement with India
Other key offerings for NRIs at GIFT City Branch
Global Current Account: This is a non-interest bearing account which does not require any minimum balance. It helps NRIs to deposit money in India in foreign currencies such as USD, EUR, GBP.
Global Savings Account: NRIs can deposit money for short term and earn interest in this savings account.
Term Deposits: They are similar to Foreign Currency Non-Resident (FCNR) deposits with minimum lock-in period of seven days compared to one year for FCNR in India. Customers can deposit in currencies such as USD, EUR, GBP.
ICICI Bank’s branch at GIFT City is also offering banking solutions to corporates including Transaction Banking, Current Accounts, Foreign Currency Deposits, Trade Finance (for importers and exporters), Corporate Finance including External Commercial Borrowing and Foreign Currency Term Loans.
