18 May 2012
Rule 2 (b) of Companies (Acceptance of Deposits) Rules, 1975 is extracted below:-
(b) "deposit" means any deposit of money with, and includes any amount borrowed by, a company, but does not include......
In view of the above, 'unsecured loan' is a 'deposit' and a private limited company is, therefore, prohibited to accept 'unsecured loans' from outsiders / general public.