Non-Resident Indians (NRIs) residing in the UAE can secure USD loans or overdraft facilities against NRE (Non-Resident External) fixed deposits held in India. With interest rates starting from as low as 1.4% per annum, this represents one of the most cost-effective financing tools available to the UAE's large Indian business community.
How the Structure Works
- The NRI maintains an NRE Fixed Deposit with a partner bank in India
- The UAE lending institution accepts the NRE FD as collateral
- A USD overdraft or term loan is extended in the UAE at highly competitive rates
- Interest accrues only on the amount drawn — not on the sanctioned limit
- The NRE FD continues earning tax-free interest throughout the loan tenure
Key Features and Benefits
- Ultra-Low Borrowing Cost: Interest rates starting from 1.4% per annum plus applicable benchmark rate
- Tax-Free Deposit Returns: NRE FD interest is fully exempt from Indian income tax — up to 5.5% per annum
- No Liquidation Required: Access funds without breaking your fixed deposit or losing accumulated interest
- Positive Carry: Your deposit earns 5.5% tax-free while borrowing costs start at approximately 1.4–2%
- Flexible Structures: Available as overdraft (revolving working capital) or term loan (specific investment)
- Eligible Applicants: Salaried and self-employed NRIs across all UAE emirates
Approved Uses of Funds
- Business expansion and working capital requirements
- Settling existing high-interest debt facilities
- Real estate investment in the UAE
- Personal investment and portfolio building
How Synergy Consulting Can Help
Synergy Consulting helps UAE-based NRIs access this low-cost financing structure through our relationships with partner banks. We guide you through the process from documentation to disbursement, ensuring the most competitive terms. Contact our team to discuss eligibility and facility sizing.