In case of borrowing in INR from NRIs/PIOs, these terms and conditions need to be complied with...* Borrowing shall be only on a non-repatriation basis. * The period of loan shall not exceed three years. * The rate of interest on the loan shall not be more than 2% above the bank rate prevailing on the date of taking the loan. The terms and conditions are prescribed under the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018, for borrowing in foreign currency from NRIs/PIOs. However, a loan from a foreign national in favour of an Indian citizen under the automatic route may not be possible.

Source: Mint May 18, 2021 16:30 UTC