Loan from n.r.i.

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SUBHASH JAIN (Querist)
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04 October 2011
CAN I BORROW LOAN FROM N.R.I. IF N.R.I. REMITT. AMOUNT DIRECTLY IN MY SAVING ACCOUNT , WHAT IS RULES REGULATION IN THIS MATTER OF RESERVE BANK OF INDIA. AND ON WHICH RATE OF INTEREST I CAN BORROW. PLEASE GUIDE ME.

Vishal D Shah

Vishal D Shah (Expert)
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04 October 2011 An individual resident in India may borrow a sum not exceeding US $ 250,000/- or its equivalent form his close relatives outside India, subject to the conditions that-

a) the minimum maturity period of the loan is one year;
b) the loan is free of interest; and
c) the amount of loan is received by inward remittance in free foreign exchange through normal banking channels or by debits to the NRE/FCNR account of the non-resident lender.
Explanation:
'Close relative' means relative as defined in Section 6 of the Companies Act, 1956.]

Regards,
cavishalshah @ gmail.com

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SUBHASH JAIN

SUBHASH JAIN (Querist)
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04 October 2011 THANKS FOR YOUR REPLY Mr. VISHAL ,
CAN YOU PROVIDE ME ANY LINK OR RULES CHAPTER WHERE I CAN READ AND UNDERSTAND THAT MATTER BEFORE MATURE THE DEAL.

Vishal D Shah

Vishal D Shah (Expert)
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04 October 2011 You may refer : Foreign Exchange Management (Borrowing and lending in Foreign Exchange) Regulations, 2000. Notification No. FEMA 3/2000-RB dated 3rd May 2000, as ammended upto date.

This would be available on RBI site. Or google it.

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SUBHASH JAIN

SUBHASH JAIN (Querist)
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06 October 2011 A LOT OF THANKS FOR YOUR VALUABLE ADVISE ,

MR. VISHAL I HAVE A ANOTHER QUERY IN THIS REGARD , THAT MENTIONED IN GUIDELINE FOR DEFINITION OF CLOSE RELATIVE SECTION 6 ( SCHEDULE 1A ) WHAT CAN WE ACCEPT GIFT ALSO FROM THE RELATIVES PLEASE ASSIST ME.

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