Question ID :
Loan from Out side India
In case of individual , can he received a loan from outside India (from individual only -POI) and later on, can he repay this loan to him back ? what is the limit ? and the process to be followed?Thanks
Answer ID :
CA. BISHT RAKESH
Apr 05, 2019
It will be better to open an NRO account with a scheduled bank in India and loan can be given to Indian Citizen out of the NRO account based on the loan agreement and money can be get credited in the NRO account. Definitely TDS as per the required rate is required to be deducted.
CA. JHA SHANKAR KUMAR on
Apr 07, 2019
Answer ID :
Although the loan can be taken from the said NRI in Indian rupees from his NRE/NRO/FCNR account but such loan will be on non- repatriations basis. This mean that funds once given cannot be taken back . Other conditions to be complied are as under :
1)The loan cannot be given for more than three years.
2)The rate of interest on such loan is fixed. The rate of interest should not be more than two percent above the Bank Rate prevailing on the day of giving of loan.
3)The repayment of the principal amount and the interest can be done only to the NRO account of the NRI. Please note that the funds of the NRO account cannot be repatriate outside India .
CA. BISHT RAKESH on
Apr 08, 2019