Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
Recovery of Shares
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
Under this system, an NRI would provide a loan to a resident Indian/ Indian Company. There are certain restrictions which would be placed on the borrowing limit of the loan. These restrictions would be placed by the Reserve Bank of India (RBI). Apart from this institution, the Authorized Dealer (Bank or Financial Institution) would have regulation of NRI loans to resident Indian. A resident Indian or a Company can borrow money from an NRI subject to certain conditions.
Lending and borrowing is regulated by the Ministry of Finance and the Reserve Bank of India
The laws which apply here are:
1. Foreign Exchange Management Act of 1999.
2. Master Direction on Borrowing and Lending transaction in Indian Rupee between Persons Resident in India and Non-Resident Indians issued by the Reserve Bank of India on January 1, 2016.
3. Foreign Exchange Management (Borrowing or lending in foreign exchange) Regulations, 2000.
The following conditions have to be followed for NRI Loans to Resident Indian/ Indian Company:
Also, Read: Money Transfer from Overseas / NRIs to India.
For a resident Indian receiving loan from an NRI:
For an Indian Company receiving a loan from an NRI:
Read, Also: Can an Indian Citizen Borrow from a Foreign National/ NRI?.
Sweden is a country in Europe and has been a member of the European Union (EU) since 1995. The...
Gold loans are among the most popular loan types, particularly in rural India. Millions of peop...
The Reserve Bank of India (RBI) has recently issued new guidelines aimed at reducing unfair cha...
Corporate tax plays an important role in selecting the ideal location for setting up a business...
The United Arab Emirates (UAE) is recognized as the top global destination for innovation and i...
Are you human?: 2 + 2 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
Foreign Direct Investment (FDI) has been an essential source of funds for countries where capital is not readily av...
27 May, 2020
A Non-Banking Finance Company (NBFC) is the company which is incorporated under the Companies Act, 2013 to provide...
06 Feb, 2021