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Banking > ECB > Details



PRE-PAYMENT OF ECB

a) Prepayment facility would be permitted if they are met out of inflow of foreign equity.

b) In addition to ECB being prepaid out of foreign equity, corporates can avail either of following two options for prepayment of their ECBs:

On permission by the Government, prepayment may be undertaken, within the permitted period, of all ECBs with residual maturity up to one year. 
OR 
Prepayment upto 10% of outstanding ECB to be permitted once during the life of the loan, subject to the company complying with the ECB approval terms. Those companies who had already availed prepayment facility of 20% earlier would not be eligible.

c) Validity of permission under the above two options will be as under :

1.Prepayment approval for ECBs other than Bonds/Debentures/FRNs will be 15 days or period up to next interest payment date, whichever is later. 
2.In case of Bonds/FRNs, validity of permission will not be more than 15 days. 




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