Under FEMA- 1999,
In list of permissible capital account transactions ,it has been said that PRI can lend loan to NRI / PROI given the condition that loan should be interest free, minimum maturity of one year and so on and foremost it has been said that lending of loan is for the purpose of meeting the personal and business requirement of NRI /PROI while he is in India. Also it has been said that such loan amount cannot be remitted outside India.
Now the case is ,Person Resident in India wants to lend certain amount as loan to his/her close relative Living abroad who is person of indian origin (PIO) as interest free loan and having the maturity period of 10 years. Can't such remittance be made abroad.?? Isn't there any way out by which individual can remit amount as loan for use abroad??? If not what will be the best way to proceed to make remittance .
Will be really thankful to have views from experts as regard the subject matter .
With Regards,
BIkash Chapagain.
