As expected, the rout of rupee against the dollar has brought cheers to the Non-Resident Indians. A section of them in the Gulf Countries have started pumping money home, even availing personal loans from banks.
However, the market watchers have advised them to be cautious on ‘making hay while the dollar shines’ as it can easily turn a double-edged sword. “Whenever there is a depreciation for the rupee, there is a trend of an increased foreign remittance. This is happening this time too,” said V A Joseph, MD and CEO of South Indian Bank.
A majority of expats from the state, in the six GCC countries, have started withdrawing cash using their credit cards or has availed personal loans.
Some have topped up their their existing loans. “Some have gone to the extent of taking loans 10 to 15 times their salary. The trend started before Eid,” said Ahmed Hassan from Kuwait.