Other Terms and Conditions
Apart from the maturity and end-use requirements given above, the f~ terms and conditions of each f;CB proposal are required to be reasonable and market related. The choice of sourcing the ECB currency of t1}e loan and the interest rate basis (i.e. floating or fixed) is left to he borrowers.
The choice of security to be provided to the lenders suppliers is also left to the borrowers. However, where the security is in the form of a guarantee from an Indian financial institution or from. an Indian scheduled commercial bank, counter-guarantee. or confirmation of the guarantee by a foreign bank foreign institution is not permitted.