Can I take loan from abroad???

Vinay Arora (Executive-Finance & Accounts)   (24 Points)

14 October 2009  

Can anyone please let me know whether I can take a loan of Rs. 500,000/- from my uncle (own mama) who stays in USA. My uncle will be taking a loan in his name in the US and transfer the same to my account here in India. I will then be repaying the EMI's in his Indian bank account from where he will transfer the money in his US account and pay the lending bank. What would be the tax implications for me and is it allowed to conduct such transactions???