Why do companies take Foreign Currency Loan??

Categories >> Business Management >> Banking Finance
Suggest New Category

Question Posted / ssethi_2411

6 Answers
22015 Views
Bank of Baroda, Crisil, I also Faced
E-Mail Answers

Answers were Sorted based on User's Feedback

Why do companies take Foreign Currency Loan??..

Answer / abhishek chauhan

if foreign countries (suppose u.k)the loan rates are quite
less as compare to india becoz its already devloped country
there the need for loans are much less than as nedeed in
devloping countries,by using derivatives(swap options) their
cost is reduced to a nominal level

Is This Answer Correct ?

39 Yes

1 No

Why do companies take Foreign Currency Loan??..

Answer / manish kella

FOREIGN CURRENCY LOANS ARE CHEAPER COMPARE TO ROI OF INDIAN
BANKS.

AVAILABLE BY WAY OF DIFFERENT MODES

SAY BY WAY OF FCNRB, SUPPLIERS CREDIT, BUYERS CREDIT, ECBS,
FCCBS ETC.,

Is This Answer Correct ?

31 Yes

3 No

Why do companies take Foreign Currency Loan??..

Answer / kishore mishra

The rate of Foreign Currency loan are lesser than INR loan,
we use to do it by buyers credit. In which banks arrange
funds from out side india to opening LC by importers.

Is This Answer Correct ?

8 Yes

0 No

Why do companies take Foreign Currency Loan??..

Answer / n.narendra

to minimize interest rates

Is This Answer Correct ?

10 Yes

3 No

Why do companies take Foreign Currency Loan??..

Answer / madhu

Foriegn currency valu changes daily.......i.e it may come
down to lower value.... when laon taken by the foreign
companies or vise versa.