Interest on loan under section 186

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2016 Dear All,

What will be the rate for charging interest on loan given by the Company to other Companies in the Financial Year 2015-16 .

Thanks and Regards,

Srirang

Jatin Bajaj

Jatin Bajaj (Expert)
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18 May 2016 According to 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.

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2016 Hi, Thanks for your help. Actually I am looking for the effective rate of interest to be charged.