Regarding interest on unsecured loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2013 In one of Private Limited Company unsecured loan taken from shareholder and non shareholder. The fund received from both are debt free fund. The now question is that company need to pay interest on the unsecured loan. If the company don't want to pay then company can do so without creating any liability. If it needs to pay compulsory then what are the rate of interest.

Guest

Guest (Expert)

27 June 2013 Loan can be taken without interest also, interest is not the only criteria for the loan.

But you must have sufficient explanations for such act.