Can Indian company take loan from foreign bank?

Can foreign bank give loan to Indian company?

A resident of India can borrow by way of a loan from a bank outside India for execution of any project outside India related to civil construction or for exports. … However, the loan should be repaid in three years. A loan in foreign exchange can also be taken by resident Indians from their close NRI relatives.

Can I take loan from foreign bank?

Foreign branches of the Indian banks may extend foreign exchange loans in the normal course of their banking business outside India. … An eligible entity, as defined under Foreign Exchange (Transfer or Issue of any Foreign Security) Regulations, 2004, notified vide Notification No.

Can Indian company take loan from NRI?

A company incorporated in India under the Companies Act can borrow money from an NRI and the borrowing can be both on repatriable and non-repatriable basis, ie the loan amount can be repaid either in India or the loan amount can be repatriated to the bank account of the NRI maintained outside India.

Can a foreign director give loan to company?

Yes . If you avail loan from non-resident director , then ECB guidelines will be applicable.

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Can foreign company give guarantee to Indian company?

As per Regulation 5(b) of the Foreign Exchange Management (Guarantees) Regulations, 2000, “a company in India promoting or setting up outside India, a joint venture company or a wholly owned subsidiary, may give a guarantee to or on behalf of the latter in connection with its business: Provided that the terms and …

Can I borrow money from another country?

Australian banks can’t take a foreign property as security for a home loan. However, they can help you fund your future investment plans if you have an existing property with enough equity. Having a good understanding of what you want to do when you have the funds is key.

What is foreign bank loan?

The foreign currency denominated loans in India are generated out of the pool of foreign currency funds of the Bank held in FCNR (B) Deposits etc. accounts as permitted by Reserve Bank of India. These Loans are commonly known as FCNR (B) Loans. UCO Bank has a broad base of NRI customers/ depositors.

Can I get loan from US bank in India?

in India. The US offers two types of loans for studying in the home country – Federal student loans are available for the US citizens only offering flexible repayment plans (income-based repayment plan) and fixed interest rate.

Can a company borrow from NRI director?

2 Borrowing in INR by companies in India: A company incorporated in India may borrow in INR, on repatriation or non-repatriation basis, from NRIs/PIOs after satisfying the following terms and conditions: i. Borrowing company does not and shall not: Carry on agricultural/plantation/real estate business; or.

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Can I take loan from NRE account?

NRIs can get the personal loan amount from the bank in their NRE or NRO accounts. Most lenders provide the loan amount in Indian rupees. However, some banks also provide these loans in foreign currency. You may check the lender to know about the mode in which the loan amount is disbursed.

Can I give loan to anyone?

Gifts from family members are not taxable, neither are the loans. But any gift above Rs 50,000 from a friend (non-relative or anyone who falls outside the definition of ‘family’ under the Income Tax Act) during a financial year is taxable. However, if it’s a loan (with or without interest), it becomes tax-free.