|
- Permissible, if NRI/OCI borrower is relative of
resident lender.
- Resident lender can extend loan upto the LRS limit
i.e. USD 2,50,000/- per
Financial Year. It is the responsibility of the resident lender to ensure the
loan amount is within the prescribed limit.
-
The loan amount should be credited to the NRO a/c of the NRI/OCI by way of cheque deposit/electronic transfer
-
The loan should be utilised for meeting the borrower's personal
requirements or for his own business purposes in India.
-
The loan should not be utilized for restricted business activity as
mentioned in FAQ 1 above.
-
The loan
is free of interest and the minimum maturity of the
loan is one year;
-
The loan amount cannot be remitted outside India by the NRI/OCI borrower.
-
Repayment of loan should be made by way of inward remittances through
normal banking channels or by debit to the Non-resident Ordinary (NRO)/
Non-resident External (NRE) / Foreign Currency Non-resident (FCNR) account of
the borrower or out of the sale proceeds of the shares or securities or
immovable property against which such loan was granted.
|