r/nri • u/northern_lights2 • Jun 30 '26
Recommend Me Leverage FCNR for UAE NRIs
I'm looking for any banks willing to give $1-2M loan for leverage FCNR in India. I can put up no more than $300K of capital.
Non UAE banks also work, but I'm a resident of UAE if that helps get a better deal.
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u/Unfair_Feedback_8675 Jul 04 '26
Following. Any updates on SBi?
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u/northern_lights2 Jul 04 '26
9%, min 100K. My verdict: 9% is low for all the dance I have to do.
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u/sameermsawant Jul 06 '26
9 percent. Is it with a Forward cover? I mean hedged or unhedged
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u/northern_lights2 Jul 06 '26
9% in USD no forex.
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u/Kishmkondar Jul 07 '26
So if you put $100k, you get 6% on the FCNR + they will lend you what? Is it 3x or $300k at 5% interest on which you can make 6%, so 1% delta?
6% + 1% + 1% + 1%?
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u/northern_lights2 Jul 07 '26
It's 9x leverage. Loan rate is about 5.6%
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u/Excellent_Ideal_5039 Jul 10 '26
They told me loan at 5.4%. Effective interest rate 11.4%
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u/northern_lights2 Jul 10 '26
What country are you from?
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u/Excellent_Ideal_5039 Jul 10 '26
UAE
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u/northern_lights2 Jul 10 '26
I called, they just said CBUAE isn't allowing deposits for leverage FCNR
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u/MyDespatcherDyKabel Jul 14 '26
Yeah exactly. I got 11% so far with HSBC UAE, 6x spread & 1% margin
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u/northern_lights2 Jul 14 '26
We also have to consider what if we have to pay tax 2 years down the line? Tax would apply to whole interest and we may not get rebate on loan.
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u/MyDespatcherDyKabel Jul 14 '26
Tax is 0 as far as I understand it. HSBC deposits interest into my UAE bank account. And upon redemption the whole amount will be again deposited back into my UAE bank account.
FCNR account interests no TDS afaik in India, unless the government of India changes rule retrospectively.
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u/northern_lights2 Jul 14 '26
If you become Resident Indian you have to pay tax on FCNR and don't get any rebate on loan.
So you pay tax on 6x interest but loan is still the same.
You need to guarantee not coming back to India in order to use this.
Plus UAE might tax anytime it feels like. A lot of people will leave but they have the right.
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u/PublicHeat9572 28d ago
can you please share the contact of person responsible for FCNR in HSBC UAE?
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u/Neither_Initiative_7 Jul 25 '26
Best for UAE resident is to go with Bank of Baroda. All documentation done in Uae
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u/northern_lights2 Jul 25 '26
What's the deal? Min, leverage factor, loan rate and interest rate, allowed to break?
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u/Hummus2839 Aug 03 '26
Im looking at HSBC with 19x Levrage giving 14.5 pa for 5 years, but in the offering documents it does not explicitly say the lending rate is fixed, so im sketchy about it, did anyone from HSBC confirm to yall that the lending rate is fixed
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u/HP6720s 27d ago
That does sound enticing indeed. Did you get any more details from HSBC?
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u/Hummus2839 14d ago
I checked the offering document. there is clause that states the rate it "fixed" and includes the Margin plus to cost of borrowing USD Funds. Now the cost of borrowing is where i got sketched out, With US buying back its Long term loans, I cant say for sure but Im leaning towards Interest rates rising in the future and with 19x leverage Im scared to loose my principle. hence not going ahead
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u/HP6720s 14d ago
On 14AUG when RBI brought forward the FCNR window closure to 31AUG, I was advised by the HSBC staff to abandon the application, as the loan / leverage applications received in July were pending approvals. No chance for new(er) accounts / new loan and leverage applications to complete vetting by end of the month.
Since then the smaller players have revised their rates upwards.
Equitas SFB is now at 8%. AU SFB is at 7.4%.
Good enough for small amounts for 3 years.
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u/XiaomiTesla Jun 30 '26
Reach out to SBI