Loan from a foreign entity
jyoti
(Querist) 21 November 2016
This query is : Resolved
Can I avail a loan of USD20000 from a foriegn entity repayable in 2 year with interest? Do I have to submit any return to RBI?
Adv. Yogen Kakade
(Expert) 22 November 2016
You can certainly borrow such loan.
As this shall be treated as unsecured loan, consult your tax adviser to guide you better.
Kumud Prasad
(Expert) 22 November 2016
Jyoti ji,
YES you can borrow subject to CERTAIN CONDITION PRESCRIBED UNDER FOREIGN EXCHANGE REGULATION,2000.
Regards
Kumud
R.K Nanda
(Expert) 22 November 2016
consult tax lawyer.
Rajendra K Goyal
(Expert) 22 November 2016
You can borrow subject to FERA regulations.
RBI need to be informed before taking loan and on each repayment installment through authorized dealer.
H.M.Patnaik
(Expert) 22 November 2016
Agreed with Experts. Compliance of FERA Regulation is a prerequisite.
You may approach your own banker to find out necessary formalities for receiving foreign funds in your account.
Sankaranarayanan
(Expert) 22 November 2016
Reveal full facts of query, What base the foreign company ready to pay loan ? The External Commercial Borrowing is strictly in compliance with ECB Regulations and guidelines.the borrower has obtained Loan Registration Number from the Reserve Bank .Borrower is supposed to take “No Objection” from an Authorized Dealer bank under the Foreign Exchange Management Act , 1999
jyoti
(Querist) 22 November 2016
Mr Sankar Narayan- A foreigner has offered a loan of USD 20000 @3% per annum for a period of 24 months for repayment of high-cost debt. Hedging cost of monthly repayment to be borne by the receiver. Whether any prior permission is required. It is not a Bank or FI. Whether loan registration number is required for an individual where loan will be strictly utilised for repayment of loans from Indian Banks/credit card payment
Rajendra K Goyal
(Expert) 23 November 2016
You have to contact your Bank for the purpose. Almost every bank have their specialized Branches for FOREX business, they would guide you.
If the financier is asking for confirmation from bank, you have to Give bank Guarantee.
Discuss with your Bank Branch dealing in FOREX.
