Regulation 8A - Rupee Loans to NRI/PIO employees of Indian body corporate - Foreign Exchange Management (Borrowing And Lending In Rupees) Regulations, 2000

1 8A Rupee Loans to NRI/PIO employees of Indian body corporate A body corporate registered or incorporated in India may grant rupee loan to its employees who is a non-resident Indian or a Person of Indian Origin, subject to the following conditions, namely. (i) The loan shall be granted only for personal purposes including purchase of housing property in India; (ii) The loan shall be granted in accordance with the lender's Staff Welfare Scheme /Staff Housing Loan Scheme and other terms and conditions applicable to its staff resident in India; (iii) The lender shall ensure that the loan amount is not used for the purposes specified in sub-clauses (i) to (iv) of clause (1) and in clause (2) of Regulation 6; (iv) The lender shall credit the loan amount to the borrower's NRO Account in India or shall ensure credit to such Account by specific indications on the payment instrument; (v) It shall be a term of the loan agreement that the repayment of loan shall be made by way of remittance from outside India or form NRE/NRO/FCNR Account of the borrower; and the lender shall not accept repayment made from any other source. **************************** Note : 1. Has been inserted vide Notification No. 067/2002 dated 20/8/2002