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NRI Pressure Mounts on Telugu Film Banner

NRI Pressure Mounts on Telugu Film Banner

Once upon a time, film financing in the Telugu industry was straightforward — single-point funding.

Over time, it evolved into multiple financing options: bank loans, private financiers, real estate-backed money, and even political funds disguised as hand loans or silent-interest investments.

Among all these, the most comfortable option for many producers has been money from NRIs (Non-Resident Indians).

The advantage? As long as monthly interest payments are made consistently, the principal amount is rarely questioned.

Out of trust, NRIs often don't demand the return of their principal for years, as long as interest arrives on time.

The real problem arises only when they ask for the principal back. At that point, repayment becomes unavoidable.

If producers fail, their market credibility takes a hit — so they’re forced to pay, even if they aren’t financially prepared. The funds are usually tied up in film production or advance payments, not readily available in cash.

Now, a well-known production house reputed for using large amounts of NRI money is reportedly facing this exact situation.

One NRI is said to have lent ₹40 to ₹45 crore to the company. Until recently, interest payments were made regularly. But now, the NRI has started pressing for the full repayment of the principal.

Returning ₹40–45 crore at once is no easy task, especially since the money is tied up in ongoing film projects and not readily accessible.

If it were a smaller amount, it could be adjusted. But with such a large sum, the only hope would typically be revenue from an upcoming film release.

Unfortunately, with no major release on the immediate horizon, repaying this amount has become a serious headache for the production house.

Now, with mounting pressure from the lender, the banner is facing a tough financial crunch — and the clock is ticking.

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Tags: Tollywood NRI