Borrow from a friend abroad through his company account

I am constructing a house and wanted to borrow around 15 lakhs from a friend abroad through is company account. My friend is a foreign national and is willing to send the money from his company account to my personal savings account. I shall be returning back the amount as soon as I get home loan approved or with in a maximum period of 2 years with any interest as per any statutory requirement. I have the following queries,

1. Is this arrangement permissible under the forex?
2. If NO, what are the other options? If YES, do I need to pay any interest when returning the amount?
3. Is there any tax implication on this amount borrowed?
4. Any pre-requisites that needs to put into practice, like an agreement or so?

It will be really helpful if any of you experts reply to these queries.

Thanking you in Advance
Madhusudan

Replies (1)
Hello Madhusudan As per FEMA a resident can borrow from his close relatives abroad interest free loan upto US$ 250000 subject to terms and conditions specified in FEM (Borrowing or Lending in Foreign Exchange) Regulations, 2000. As you are asking to borrow from company account which may not be possible.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 17 August 2026
CA Article Trainee

ASC Group

Noida

CA Inter

View Details
Company
ARTICLESHIP 14 August 2026
Article Assistant

N J Suresh & Associates

Bengaluru

CA Inter

View Details
Company
19 August 2026
PAID ARTCILE ASSISTANT

My Legal Tax Consultants Pvt. Ltd.

Noida

CA Inter

View Details
Company
14 August 2026
Article Assistant CA Articleship

Eshwar & Co Chartered Accountants - Nungambakkam

Chennai

CA Inter

View Details
Company
14 August 2026
Semi Qualified

Goyanka & Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 07 September 2026
Article/ Paid Assistant

Murali and Sumeet Chartered Accountant

Bengaluru

CA Foundation

View Details
Company
ARTICLESHIP 24 August 2026
Article Assistant

M/s.S.G.Salecha & Co.

Mumbai

CA Inter

View Details
Company
Featured 12 September 2026
Assistant Manager - Finance & Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details