An FRA is a contract between two parties which fixes the rate of interest that will apply to a nominal future loan or deposit for an agreed amount, in an agreed currency, to be drawn or placed at a future date for an agreed term. Should you desire to quantify the cost of a future loan or revenue from a future investment an FRA could be for you.

When obtaining an FRA, if any loss is incurred on account of change in the interest rates, you will be compensated in cash by the bank for any loss that may be incurred. On the other hand if the interest rate moves in your favour, any gain on this count is to be surrendered by you to us. FRAs can be bought for exposures maturing from three months from date of purchase. Maximum period of an FRA is 12 months with a maximum final maturity of 24 months.

FRAs are available in all major currencies.