Can director father give loan to company

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Murali krishnan (Querist)
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20 January 2024 i am director of a private limited company my question is
1) can my father give loan to company from borrowed funds?
2) he borrowed personal loan from bank and give loan to my company?

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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22 January 2024 According to the statute; a business may only borrow up to 60% of its paid-up share capital and free reserves from directors, shareholders, or relatives of directors. The interest rates for the loans shall not be less than those that are currently being charged in the market for loans of a similar nature.

https://taxguru.in/company-law/loan-director-shareholders-companies-act.html