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Low Interest Rate Loan to Directors

26 October 2018

in unlisted public company, can director get interest free loan or very low interest rate loan to directors, like 3% or 6% per annum

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3 Replies

Hitesh (Student) (3549 Points)
Replied 26 October 2018

No loan shall be given to director at a rate of interest lower than the prevailing yield of one year, three year, five year or ten year Government Security closest to the tenor of the loan as per sec 186 of companies act..

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Neel Parikh (105 Points)
Replied 29 October 2018

First of all.. you cannot give loans to directors if u are a public company.
(unless it is the routine business to give loans or it was pre decided at the time of appointment as per employment agreement)

Emma vegga (13 Points)
Replied 19 June 2024

As of the latest update, Kotak Mahindra Bank offers personal loans with interest rates starting from 10.25% per annum. However, the minimum interest rate for a personal loan can vary based on several factors including the applicant's credit score, income, loan amount, and repayment tenure. To get the best rates, applicants should ensure they have a good credit history and stable income. It's advisable to check the current rates directly with Kotak Mahindra Bank or visit their official website for the most accurate and updated information on personal loan interest rates.