External Commercial Borrowing (ECB) Declaration
Prepare the cover letter and particulars for reporting a foreign currency or rupee loan from a non-resident lender under the ECB framework.
What it is
External commercial borrowings are loans raised by eligible Indian entities from recognised non-resident lenders, governed by the Foreign Exchange Management (Borrowing and Lending) Regulations and the RBI Master Direction on ECBs. Before drawdown the borrower obtains a Loan Registration Number (LRN) by submitting the ECB form through its authorised dealer bank, and then files monthly returns in Form ECB-2. This template prepares the particulars: lender, amount, currency, cost, maturity, end-use and route.
When it is used
- An Indian company borrowing from its foreign parent.
- Loans from foreign banks or financial institutions.
- Issue of foreign currency or rupee-denominated bonds abroad.
What the template covers
- Borrower name, CIN, address and sector
- Lender name, country and type
- Amount and currency
- All-in cost and average maturity
- End-use of funds and approval route
- AD bank and authorised signatory
Details you will need
The generator asks for the following. Fields marked with an asterisk in the form are required; the rest can be left blank and filled in later in Word.
Letter
Letter Date; Place
Indian Borrower
Borrower Name; CIN; Address; Sector
Foreign Lender
Lender Name; Lender Country; Lender Type
ECB Terms
ECB Amount (USD); Currency; All-in Cost Ceiling (% over benchmark); Average Maturity Period (years); End-Use of Funds; Approval Route
AD Bank
Authorised Dealer Bank
Signatory
Authorised Signatory; Designation
Stamp duty, registration and filing
The ECB framework sets eligible borrowers and lenders, minimum average maturity, all-in cost ceilings and end-use restrictions, and RBI revises it from time to time; check the current Master Direction on rbi.org.in before signing. Late reporting can be regularised with late submission fees. Interest paid to the foreign lender is subject to withholding tax.
Generate the External Commercial Borrowing (ECB) Declaration
Fill in the form and download the draft as a Word file. It is a general template, not legal or professional advice; have it reviewed for your facts before you sign or rely on it.
Need this checked against your facts, or the registration or filing that follows (e.g. the MCA e-form filing)? Contact SKAG and Associates
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Frequently asked questions
What is an LRN?
The Loan Registration Number allotted by the RBI before drawdown of an ECB.
When is ECB-2 filed?
Monthly, within the time set in the Master Direction, through the AD bank.
Is tax deducted on ECB interest?
Yes, interest paid to a non-resident lender is subject to withholding tax at the rate under the Act or the tax treaty.
This page gives general information for reference only. Laws, stamp duty rates and filing requirements change and differ between States, so confirm the current position for your case. Related: all document templates · free tax calculators · compliance calendar and guides.