HI, I need to take interest free loan from a foreigner. I intend to use this amount to buy a house and pay back in about 10 years. The loan will be in British pounds about 60K. What is the procedure to do this.
Dear Sir,
With respect to your quarry please find below answer :
As per prevailing RBI Policy Individual is not allowed to take loan from foreigner unless it is for personal purpose. It can be accepted in the form of Gift and later on you can reply it but in the nature of loan same shall not be permitted.
It will also attract issue in repayment of loan and interest payment.
For further details please free to contact me.
Thanks & Regards
CA Vishrut Shah
(+91-98214798534)
Hello, I need the loan from my foreigner friend for personal use, to buy a personal property. Can this be done ? Do i have to take RBI permission for this ? I can give a promissory note to the Loaner. Will that work ?
Dear Sir,
Kindly note that it is into transaction not permitted by the RBI. Hence there is not much option to it. However you can contact your banker and can make a special case application to the RBI for it and they have power to allow the transaction base don it.
Thanks & Regards
CA Vishrut Shah
+91-9824798534
Hello Sir,
Considering your query it appears that you are planning to take a loan from a foreigner in Foreign Currency. Such a transaction is covered under FEMA Laws. You may visit your branch and discuss with them if they allow remittances of Foreign Currency.
Regards,
CA Rohit R Sharma
Mumbai.
You can take the same
Hello, Thank you for your answers. I did follow-up with my SBI branch. They said i can get the Foreign currency in our SBI accounts, without RBI approvals. As this is a loan from a non-relative, will this be taxed? We are making paperwork with lawyers to show this as an interest free loan. Will that help ? Regards
No it will not be taxed.
You can take declaration from the British Citizen. It will not be taxed
In my view, you can take loan under RBI's automatic approval route for the loan proposed to be taken from the foreign citizen.
Loans from non relatives are not treated as income, provided the loan is genuine.
