Section 186 : loan at interest

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Can anyone please clarify the meaning of  Section 186 (7) No loan shall be given under this section 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.

If A pvt ltd company grants loan for 5 years then what will be the rate of interest for it.

Replies (1)

I think it is Prevailing yield rate for banking , it should not be lower that , other views solicited 

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