11B.4
- Document type
- Manual
- Dated
- Category
- Exchange Management Manual
Loans in India to Foreign Nationals/Liaison Offices of Foreign companies
(i) Loans and advances to foreign nationals not permanently resident in India should not be granted if required for investment or for dealing in stocks and shares.Loans for personal purposes such as purchase of household articles may be given up to a maximum of Rs.5,00,000/-(Rupees Five lakhs). This limit applies to total borrowings from all banks of the borrower and his dependents. Applications in form LOV 2 for loans in excess of this limit should be referred to Reserve Bank for prior approval.
(ii)Loans/overdrafts should not be granted to liaison offices of foreign companies since entire expenses of such offices are required to be met out of funds remitted from abroad.