Foreign exchange borrowing framework permits overseas loans, trade credit and external commercial borrowings subject to prescribed eligibility and conditions.

Foreign-exchange borrowing from outside India is permitted for Authorised Dealers, eligible resident entities, importers, specified project and export arrangements, statutory financial institutions, and resident individuals, subject to applicable conditions. Authorised Dealers and eligible resident entities may raise external commercial borrowings under Schedule I, while importers may raise trade credit under Schedule II. Financial institutions require prior Government approval for foreign-exchange borrowing for onward lending. Resident individuals may borrow from overseas relatives, and students abroad may obtain overseas education loans, within the prescribed limit and conditions.

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