If you are planning to borrow in rupees, you may do so on non-repatriation basis (here repatriation means, taking money to overseas account).
As per the RBI Notification No: FEMA 4/2000 - RBI dated 3rd May 2000, these are the following points to be kept in your mind
1) The loan amount could be received in the either of the following ways
As an inward remittance from outside India or from any of the following accounts of the lender maintained with any authorized bank or authorized dealer.
NRE Account (Non-Resident External Account)
NRO Account (Non- Resident Ordinary Account)
FCNR Account (Foreign Currency Non-Resident Account)
NRNR Account (Non-Resident Non-Repatriable Account)
NRSR Account (Non-Resident Special Rupee Account)
The loan amount can be obtained only through the above said accounts and not in any other manner.
2) The period of loan cannot exceed three years
3) The rate of interest on loan shall not exceed, two percentage points over the bank rate prevailing on the date of availment of loan.
4) If the loan is made out of NRSR or NRO account, the payment of interest on loan or repayment of loan can be made only by credit to these account and not in any other manner.
5) Finally, the loan amount cannot be repatriated outside India.
Above are the 5 main points to be kept in mind before taking up a loan from NRI
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