Loans/Borrowings

NRIs/PIOs are allowed to take loan or lend a loan, without any prior approval of Reserve Bank of India.

Lending By NRIs/PIOs to Indian Residents:

• Lending in foreign exchange, upto USD 250,000, can be done to Indian Resident Individuals (conditions apply).
• Lending in Indian rupees can be done, on non-repatriation basis, to Indian Resident Individuals (conditions apply).
• Lending in Indian rupees can be done, on repatriation as well non-repatriation basis, to Indian Companies by way of Non-convertible Debentures (NCD) (conditions apply).

Borrowings By NRIs/PIOs:

• House Loan: NRIs/PIOs are allowed to borrow, in INR, (from authorised dealer or financial institution or Indian Company Employer) for the purposes of acquisition of residential immovable property in India (conditions apply).
• ESOPs Loan: NRI employees of Indian companies are allowed to borrow, in INR, (from authorised dealer) for acquiring ESOPs (conditions apply).
• Continuance of Earlier Loan: NRIs are allowed to continue their INR loan, which was acquired when he/she was resident in India, on becoming NRI (conditions apply).
• Loan Against Share/Security/Immovable Property: NRIs are allowed to borrow, in INR, (from authorised dealer) against the security of shares/securities/immovable property (conditions apply).