Not only an individual but an Indian company can also borrow from a foreign national or a Non- resident Indian (NRI). … The RBI is responsible for and overseas all lending and borrowing between residents of India and non- resident Indians.
Can an Indian take a loan from a foreigner?
An individual and Indian company both can borrow the money from a foreign national/ NRI but only subject to Certain Conditions. Ministry of Finance and the Reserve Bank of India is regulating the lending and borrowing between residents of India and Non-Resident Indians.
Can I borrow money from a foreigner?
People resident in India may borrow, both in rupees or foreign currency; but conditions apply. In case of borrowing in INR from NRIs/PIOs, these terms and conditions need to be complied with… * Borrowing shall be only on a non-repatriation basis.
Can a resident Indian take loan from foreign bank?
A resident of India cannot borrow in foreign exchange from an NRI. However, under certain situations, RBI may permit a person to borrow in foreign exchange from a person outside India. … A loan in foreign exchange can also be taken by resident Indians from their close NRI relatives.
Can a foreign company give loan to Indian company?
Restriction on borrowing of Loans from Foreign companies. As per the FEMA regulations, any individual is not allowed to borrow foreign exchange from an individual outside India or borrow currency in the form of Indian Rupees from a person outside India.
Can Indians take loan from NRI?
Resident of India can only borrow money in Indian rupees from NRIs. The conditions under which he/she can borrow are: Borrowing shall be only on a non-repatriation basis. This means that funds once given cannot be taken back.
Can a foreign company give ECB to Indian company?
In this context, a direct foreign equity holder with minimum 25% direct equity holding in the Indian subsidiary, an indirect equity holder with minimum indirect equity holding of 51% in the Indian subsidiary, or a group company with a common overseas parent, is permitted to provide an ECB to its Indian affiliate.
Can a foreign holding company give guarantee to Indian subsidiary?
Guarantees for subsidiary by foreign holding firm will act as security for loans. Banks had interpreted Section 185 of new Companies Act to mean that they could not extend loans to subsidiaries on strength of guarantee provided by holding firm.