Section 5(4) in The Foreign Exchange Management (Borrowing Or Lending In Foreign Exchange) Regulations, 2000
(4)A person resident in India may lend in foreign currency out of funds held in his EEFC account, for trade related purposes to his overseas importer customer:[Provided that where the amount of loan exceeds US $ 1,00,000, a guarantee of a bank of international repute situated outside India is provided by the overseas borrower in favour of the lender.]
