Section 186 : loan at interest

Sanjay (Associate) (152 Points)

19 May 2017  

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.