Best answer: Can foreigner give loan to Indian?

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 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 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 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.

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Can a foreign director give loan to Indian company?

Yes. A director can give loan to the company. There are no restrictions.

Can foreign company give guarantee to Indian company?

As per Regulation 5(b) of the Foreign Exchange Management (Guarantees) Regulations, 2000, “a company in India promoting or setting up outside India, a joint venture company or a wholly owned subsidiary, may give a guarantee to or on behalf of the latter in connection with its business: Provided that the terms and …

Is private lending 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.

Can I give loan to my friend in India?

No, loan from friends or relatives are tax free. No borrower is taxable for any sort of loan.

Is Friendly loan legal in India?

A friendly loan is generally without any interest and there is no provision to charge any notional interest on the same. … But Tax benefit under Section 24 of the Income Tax Act can be claimed as Tax deduction with respect to Interest paid on loan. The main criteria is ‘the loan should not be for personal use.

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 I give loan to anyone?

Normally the personal lending is a private affair i.e. among friends, family members, and acquaintances. An individual lend only to the trustworthy people and it is based on mutual trust. We can loosely refer it as Personal Lending. It is another form of Peer to Peer Lending but only among a closed group.

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How can I get international loan?

Two ways to receive funds, debit the NRE/FCNR/NRO account of the NRI, and give that loan to the Indian resident. Another, inward remittance from outside India. The tenure of loan can’t be more than three years. The rate of Interest is agreed upon prior and remains fixed.