Can a non-resident give loan to 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 non-resident residents give loans?
Can an NRI borrow from a resident Indian? Yes, a resident Indian can give loans to an NRI relative subject to the following terms and conditions: The loan should be free of interest. Minimum maturity period should be one year.
Can a person give loan to individual in India?
A resident can accept a rupee loan only from a non-resident Indian or a person of Indian origin, and not any other non-resident, and that too, for a period not exceeding three years, and with interest restricted to a rate of 2% over the bank rate.
Can an individual resident Indian borrow money from his close relatives outside India?
Borrowing by an individual Resident from NRI in foreign exchange: An individual resident can borrow upto USD 2,50,000/- from his close relatives outside India. subject to the following conditions: The minimum maturity period of the loan is one year.
Can Indians borrow from foreign banks?
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 I take loan from foreign individual?
Lending By a Foreigner/ Non-Resident Indian to an Indian Person. A requirement of funds for private use can come at any point in time in a person’s life. … The borrow can receive the loan amount only by way of inward remittance from outside India or from an NRE, NRO, FCNR, NRNR, NRSR.
Can a company take loan from foreign director?
Yes . If you avail loan from non-resident director , then ECB guidelines will be applicable.
Can I give loan to anyone?
“An Indian can only accept rupee loans from non-resident Indians (NRIs) or a person of Indian origin and not from other non-residents. … An Indian resident can also lend to an NRI relative. This loan can only be given for a period of one year and the same shall be interest-free.
How can I get NRI loan in India?
Documents required for NRI personal loans
- Passport and Visa copy.
- Bank statement for at least 12 months.
- Proof of identity.
- Proof of address.
- Salary slips or salary certificate.
Can an individual give a loan to a company?
Section 185(2) allows a company to give loans to any person/entity in whom any of the directors are interested in subject to certain conditions. … Any private company of which any director of the lending company is a director or member.
Is hand loans legal in India?
P2P lending is a completely legal process with various regulated by the RBI – ensuring protection of interests of both – borrowers and lenders. It is done via various online organizations. The key feature of this type of funding is that they don’t come with interest payments.
Is personal lending legal?
Yes, it is. It’s legal to lend money, and when you do, the debt becomes the borrower’s legal obligation to repay. … If you are lending money to a friend or family member, you may want to get the details in writing and signed by all parties in case there’s a conflict or misunderstanding.