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Loan from individuals in private ltd company

Sahil (NA) (159 Points)

02 July 2016

Can anyone pls tell me whether a company can take a unsecured loan from Individuals not directors and its relatives??? Please reply fast

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P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 02 July 2016

No, it will be treated as 'deposit' and is not allowed unless covered under any of the exemptions given in Rule 2(1)(c) of Companies (Acceptance of Deposits) Rules 2014.