LOV 1 [Paragraphs 10 D.2(i),10 D.7(ii) and 13 B.9(iii)] Application for permission to avail of loans/overdrafts in India (i) by non-residents against Fixed Deposits/Shares/Securities/Immovable Properties or (ii) by residents against Shares/Securities etc. of Indian companies provided by non-residents Instructions: 1. The application should be completed in duplicate and submitted through an authorised dealer from whom the applicant desires to avail of loan/overdraft facility. 2. The authorised dealer should seek the approval of Reserve Bank before granting loan/overdraft facility where it cannot be granted under the delegated powers. 3. Before forwarding the application to Reserve Bank, the authorised dealer should scrutinise it properly to ensure that it is complete in all respects. 4. Wherever applicable, reference numbers and dates of Reserve Bank's letters of approval should be quoted in full. References to the Exchange Control Manual should also be quoted where relevant. Documentation: 5. Certified copies of audited Balance Sheets and Profit and Loss Account statements for the last two years in case borrower is a company/firm. 6. Suitable documentary evidence in support of the purpose of the loan, like draft agreemeent, draft guarantee etc. 1. Name and address of the borrower 2. If borrower is an individual, his nationality 3. If the borrower is a company/firm (a) place of incorporation/registration (b) percentage of non-resident interest in the capital, held on - (a) repatriation basis (a) (b) non-repatriation basis (b) 4. Nature of business of the borrower in India 5. Name and address of the authorised dealer from whom the loan/overdraft facility is sought 6. Details of loan/overdraft facility sought (a) Amount of loan/overdraft (a) (b) Nature of the facility (b) (c) Purpose of loan (c) (d) Period of loan (d) (e) Rate of interest (e) 7. Details of securities offered: (a) In case of FDRs/Shares/Securities/ (a) Immovable Properties (i) Nature of security (whether FDRs, Shares, Units etc.) (i) (ii) Total face value of securities/ immovable properties (ii) (iii) Name and address of the issuing institution (iii) (iv)Date/s of maturity/ies (iv) (v) Whether securities/immovable (v) properties carry right of repatriation or not (b) Other securities, if any (b) 8. Source of funds from which loan/overdraft will be repaid 9. Length of time, if any, for which this facility has been in existence 10. Details of other borrowings availed of: (a) Total amount (a) (b) Nature of borrowing (b) (c) Purpose (c) (d) Period (d) (e) Names of the lenders (e) (f) Number/s and date/s of Reserve Bank's approval (if applicable) (f) 11. Any other relevant information I/We hereby declare that the particulars given above are true and correct to the best of my/our knowledge and belief. Place:............. ..................................................................... Stamp (Signature of applicant/authorised official) Date :............. Name:........................................................... Designation:................................................. To be completed by Authorised Dealer Certified that the application and documents submitted are in order. We recommend that the facility applied for may be approved. Place:............. ..................................................................... Stamp (Signature of applicant/authorised official) Date :............. Name:........................................................... Designation:................................................. Name and Address Of Authorised Dealer:.................................. 50
