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Urgent regarding whether Director can give interest free rate to private company?

pooja agarwal (ca) (46 Points)

03 February 2020

Hello all,

Please confirm regarding Interest free loan given by director to private limited company..

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6 Replies

pooja agarwal (ca) (46 Points)
Replied 03 February 2020

Please confirm the same as soon as possible

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 03 February 2020

Yes... He can give.

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CS Vishal Mehta (Self Employed) (436 Points)
Replied 03 February 2020

There seems no such provision which restricts a Director to give interest free loan to the Company so yes Directors can give interest free loan to the Company.

pooja agarwal (ca) (46 Points)
Replied 03 February 2020

Thanks for the reply... We just have to get a declaration from director that he is giving loan to company out of his funds and then we have to report it in directors report and in notes to accounts as well we have to show it as unsecured loans?