Foreign Currency Loans

1. Can I take loan from my NRI uncle? Can I borrow money in foreign currency from my uncle who lives abroad? What are the formalities and what will be the tax implications? Aaliya Sikand, via email Borrowing money from rich uncles is always welcome, be it from desi uncle or videshi uncle. The FEMA regulations allows hassle-free borrowings upto US$2,50,000 or its equivalent in foreign exchange from close relatives outside India. One has to follow conditions mentioned below: i. The loan has to be interest free. ii. The minimum maturity period of the loan should be seven years. iii. Amount of loan should be

This article was originally published on August 13, 2003.