Acceptance of the Unsecured Loans by a PVT LTD Co.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2010 hi
can any one let me know whether a Private Limited Company can accept the Unsecured Loans from the Relatives and the Directors

Ankur Garg

Ankur Garg (Expert)
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17 February 2010 YES.

Please go ahead. The same transaction is allowed in company law and the same would not be treated as a public deposit under deposit rules, 1975.

Regards

Rasesh

Rasesh (Expert)
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17 February 2010 Yes, loans can be obtained from Directors and their relatives.

Morever, such deposit is exempt as per the Companies (Acceptance of Deposits) Rules, 1975, subject to the compliance given in Proviso to clause 2(b)(ix)

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