Can loan be given to NRI?

Yes, a resident Indian can give loans to an NRI relative subject to the following terms and conditions: The loan should be free of interest. Minimum maturity period should be one year. The limit of loan is US$ 25.000.

Which condition is not applicable to a person resident in India to borrow in INR from NRIs PIOs?

Borrowing by Companies in INR from a Non Resident Indian The following conditions to be met for the borrowing: The company which intends to borrow funds from NRI, should not be engaged in agriculture or real estate business or a chit fund company.

In which of the following type of account loan Cannot be given outside India?

Accordingly, a PIO may advance a loan to his/her relative who is a person resident in India from his/her NRO account subject to fulfilment of the above mentioned conditions. The loan amount cannot be remitted outside India and the repayment should only be made to the NRO account.

When an NRI give loan to a resident the maximum tenure of the loan can be?

While a resident can avail loans with a maximum tenure of 30 years with some banks, tenure for NRI home loans is restricted. It is available within the range of 5-15 years. Extension beyond the term of 15 years is solely at the discretion of the bank and in exceptional cases only.

Can Indians take loan from NRI?

Resident of India can only borrow money in Indian rupees from NRIs. The conditions under which he/she can borrow are: Borrowing shall be only on a non-repatriation basis. This means that funds once given cannot be taken back.

Can NRI repatriate loan from India?

Borrowing by an individual Resident from NRI in Rupees: The period of loan shall not exceed 3 years. Repayment for interest and repayment of loan shall be made credit to the lender’s NRO account. Amount borrowed shall not be allowed to be repatriated outside India.

Can a company take loan from NRI director?

Yes. A director can give loan to the company. There are no restrictions. However the interest rates shoul be in tune with market and should not be high thus giving extra profit to the director at the cost of the company and the shareholders.