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Unsecured Loan

Preeti Sanghi (Advocate) (48 Points)

08 May 2008

Hi All,

Can anyone tell me " A private limited Joint Venture Company can take unsecured loan from its promoter foreign Company, if Yes what is the Limit of this amount and procedure of the same.

Thanks in Advance

Preeti

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3 Replies

Vinod Kashyap (XBRL Training) (451 Points)
Replied 08 May 2008

hi !

Yes, under the prsent External Commercial Borrowing Policy of RBI, the company can take Unsecured Loan from Foreign Collaborator or Foreign Equity Holders upto USD 500 Million per Financial Year under the Automatic Route subject to the compliance of other terms & conditions laid down under ECB Policy.

As regards the procedure to be followed for ECB you may please read RBI Circulars No. A.P.(DIR Series) Circular No 04 dated 4th August 2007 & A.P.(DIR Series) Circular No. 5 dated 5th August 2005 & Circular No. A.P.(DIR Series) Circular No. 60 dated 21st May 2007 in this regard.

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(Guest)

Hi mam,

i got perosnal loan(unsecured) in india.im unalble to repay them wat happens in worest case i think they wil file case against check bouce .but how can escape from such case one morething right now im in london..for 1year i wont b back to india..so after 1year ill b back will b any prob?..i think u understand my question ok then waiting for ur replay mam..tanxx