Investment by nri in sole proprietorship establishment

Subscription (Manager) (44 Points)

18 June 2016  
My friend has started business as Sole Proprietorship Establishment but need running capital and I wish to help him. Can I loan to him funds from NRE Account by RTFS Transfer or can I remit directly from Overseas to his Sole Proprietorship Current Account. What will be the Income Tax law in this regard. Thank you Regards