RBI eases overseas loan rules for low-cost builders

It will also allow companies to hedge the entire borrowing,protect them from any sharp depreciation of the rupee against the dollar.

8220;The ECB availed of by developers and builders shall be swapped into rupees for the entire maturity on a fully hedged basis,8221; the RBI said in a notification on Monday.

The central bank also reduced the minimum experience companies have to have to undertake these projects to 3 years from 5 years.

The Reserve Bank also scrapped the minimum paid-up capital of 500 million rupees for property developers.

The Indian rupee slumped to an all-time low of 59.9850 to the dollar last week and foreign investors have been selling Indian debt,with many of them incurring losses due to their unhedged currency exposure.