Can Indian company lend money to foreign company?

Can an Indian company give loan to a foreign company?

Borrowing from an overseas company or a Non-Resident Indian is regulated by the Foreign Exchange Management Act, 1999. … Loans from foreign companies can be availed by Indian companies and entities. However, entities have to comply with the provisions related to foreign exchange management act.

How Indian companies borrow funds from foreign companies?

A company can get a soft loan through two routes- the automatic route and the government route: … 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.

Are Indian banks allowed to lend money outside India?

Foreign branches of the Indian banks may extend foreign exchange loans in the normal course of their banking business outside India. 3. An eligible entity, as defined under Foreign Exchange (Transfer or Issue of any Foreign Security) Regulations, 2004, notified vide Notification No. FEMA.

Can a foreign director give loan to company?

Yes . If you avail loan from non-resident director , then ECB guidelines will be applicable.

Can I borrow money from another country?

Australian banks can’t take a foreign property as security for a home loan. However, they can help you fund your future investment plans if you have an existing property with enough equity. Having a good understanding of what you want to do when you have the funds is key.

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What is ODI form of RBI?

Overseas Direct Investment (ODI): Direct investment outside India means investments, either under the Automatic Route or the Approval Route, by way of contribution to the capital or subscription to the Memorandum of a foreign entity or by way of purchase of existing shares of a foreign entity either by market purchase …

Can Indian citizen borrow from abroad?

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 a company borrow from NRI director?

2 Borrowing in INR by companies in India: A company incorporated in India may borrow in INR, on repatriation or non-repatriation basis, from NRIs/PIOs after satisfying the following terms and conditions: i. Borrowing company does not and shall not: Carry on agricultural/plantation/real estate business; or.