Aryan & Aarav, an LLP having turnover of ₹ 45 lakh and contribution of the partners exeeding ₹ 30 lakh in F.Y. 2018-19 is seeking your advice in the following matters: Is LLP eligible to raise loan from ABC Ltd., a f

Limitation in External Commercial Borrowings (ECB): LLP's are not allowed to raise ECB. Hence, it cannot avail commercial loans from its foreign partners, FII's, foreign banks and any financial institution located outside India. Hence, Aryan & Aarav LLP cannot raise loan from ABC Ltd., a foreign bank.