Interest on taken from partners

This query is : Resolved

SUMIT CHAUDHARY (Querist)
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02 September 2016 Sir
Pls advice me, if the firm takes loan from partners then its mandatory to pay interest on loan to partners.

if firm do not pay any interest on loan taken from partners then there is any issues in any law.

Thank u very muh in advance

Amol S Joglekar

Amol S Joglekar (Expert)
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02 September 2016 No... it is as per the mutual decision of the partners whether to pay interest or not.
If , however, interest is paid, it should be empowered in the DEED of partnership

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