Can a private limited company be a guarantor?

Nitin Dilip (Articled Assistant) (30 Points)

18 January 2013

Hello,

I would like to know if an Indian Private Limited company can stand as a guarantor to a loan taken by one of its directors.

Thank you.

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4 Replies

mukesh sarawagi (ca final) (142 Points)
Replied 18 January 2013

Yes.I am a banking professional.I always take gurrantee of the co. while giving loan to its directors.But for public Ltd co. 295 will apply.

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CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 18 January 2013

AGREED WITH MUKESH + THERE IS NO SPECIFIC RESTRICTION IN LAW.

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Nitin Dilip (Articled Assistant) (30 Points)
Replied 21 January 2013

Thank you to you both. Appreciate the help :)

Mehak Vohra (student) (25 Points)
Replied 04 June 2015

Does this private limited company has to gain NBFC License?

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