iv) A resident individual will be permitted to service loans taken overseas earlier as a person resident outside India subject to terms and conditions and limit as specified by the Reserve Bank from time to time. 9. Any borrowing under erstwhile regulations can be continued as permitted up to the due date of repayment.
Can individual give loan to foreign 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. However, there are specific exceptions to the above prohibition.
Can resident Indian give loan to foreign company?
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.
Ringgit loans from other non-bank non-residents, including a non-resident entity within its group of entities that is set up to obtain foreign currency loan from other non- residents, is limited to an aggregate of RM1 million.
Can Indian banks lend to foreign companies?
On Thursday, RBI said that banks can extend loan to overseas subsidiaries of Indian corporates but they have to make 2% of the loan amount as provision on such loans. … These higher provisions are in addition to country risk provision that is applicable to all overseas exposures.
Can a non resident director give loan to an Indian company?
A company incorporated in India under the Companies Act can borrow money from an NRI and the borrowing can be both on repatriable and non-repatriable basis, ie the loan amount can be repaid either in India or the loan amount can be repatriated to the bank account of the NRI maintained outside India.
Can a foreign director give loan to company?
Yes. A director can give loan to the company.
Can a private company take loan from NRI?
No, The NRI can’t give loan to Indian Company either in foreign currency or in rupees.
Can I give loan to anyone?
Gifts from family members are not taxable, neither are the loans. But any gift above Rs 50,000 from a friend (non-relative or anyone who falls outside the definition of ‘family’ under the Income Tax Act) during a financial year is taxable. However, if it’s a loan (with or without interest), it becomes tax-free.
Can a company give loan to another company in Malaysia?
A company (other than an exempt private company) is not permitted to either: Make a loan to any person connected to its director or a director of its holding company. Enter into a guarantee or provide any security in connection with a loan made to its director or a director of its holding company.
Can non-resident borrow in ringgit?
Yes. 4. Can a non-resident borrow in ringgit in Malaysia for any purpose? A non-resident is only permitted borrow in ringgit to finance or refinance activities in the real sector in Malaysia, including the purchase of immovable property, except for purchase of land only.
Can ringgit be traded outside Malaysia?
The Malaysian ringgit is sometimes referred to as the Malaysian dollar. Its abbreviation is RM and its currency code is MYR. The currency’s exchange rate is free-floating but is not traded offshore.
Can an Indian individual set up a company abroad?
The RBI’s notification dated March 5, 2013 but published on August 5, 2013 clarified that an overseas company can be set up by a resident Indian individual. … Such a company cannot have a step down subsidiary (as explained above).
Can NRI director give loan to company?
Yes. A director can give loan to the company. There are no restrictions. However the interest rates shoul be in tune with market and should not be high thus giving extra profit to the director at the cost of the company and the shareholders.
Can I borrow from a foreign bank?
Approval Route: Under the approval route, in order to get a loan from a foreign entity, the borrower is required to submit an application with the RBI in the prescribed form through authorized dealer as specified by the RBI.