Unsecured loans

This query is : Resolved

TARIQUE RIZVI (Querist)
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01 September 2015 CAN WE BRING ANY AMOUNT OF UNSECURED LOAN FROM ANYBODY IN OUR PRIVATE LIMITED COMPANY SUBJECT TO COMPANY'S ACT OF SEPTEMBER 2013. I HAVE HEARD THAT RULES FOR TAKING UNSECURED LOANS NOW HAVE BEEN SIMPLIFIED AND WITH NO RESTRICTION A PVT LTD COMPANY CAN BRING ANY AMOUNT OF UNSECURED LOAN. NOTHING IS APPLICABLE SUBJECT TO SEPTEMBER 2013 COMPANY ACT

Pratik Shah

Pratik Shah (Expert)
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03 September 2015 No, it is not possible to take unsecured loan from ANYBODY.

I will bifurcate this into following points.
1. from Directors - a private company can take unsecured loan from Directors without any limit.

2. from Shareholders - a private company can take unsecured loan from its shareholders upto 100% of aggregate of its paidup capital and free reserves.

Private company can not take money from any other persons subject to provisions of 73 of Companies Act 2013