International Schemes > Capital Account Transaction > External Commercial Borrowings
External Commercial Borrowings
External Commercial Borrowings are commercial loans raised by eligible resident entities from recognised non-resident entities to meet their capex expenditure, working capital requirements, etc.
As per extant regulations, External Commercial Borrowing transactions should adhere to criteria like
- minimum maturity period,
- permitted and non-permitted end-uses,
- maximum all-in-cost ceiling, etc.
ECB can be raised in INR or any freely convertible Foreign Currency.