Senthil Nathan (Other) (32 Points)
23 May 2009Can I borrow money from NRI or Indian Settled in US (Citizen) for expanding my proprietary business.
What is the procedure?
Do we have to sign any bond?
Is there any minimum limit on interest rate to be paid?
Taxation issues? Gift tax?
Do I have to notify RBI or any other body ( Amount Rs 6 or 12 lakh)
Please help.
Sachin
(Chartered Accountant)
(419 Points)
Replied 14 June 2009
Dear Senthil,
Definitely, you can take loan from NRI/ indian person settled in US. there are definite procedure for it. Please write me in detail about your business and why and how much amount do you want to take sothat i can help you my email id is sachinagarwalcallb @ gmail.com
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7024 Points)
Replied 17 May 2011
An individual resident in India may borrow a sum not exceeding USD 250,000 or its equivalent from 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 debit to the NRE/FCNR account of the non-resident lender.
‘Close relative’ means relative as defined in section 6[1] of the Companies Act, 1956.
Anuj
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