Limit for loan amount
Querist : Anonymous
Please advise me on the following Query :
1} What is the limit of Loan amount a share holder can issue to a private Ltd company
2} Can a Director give loan to a Pvt / Public Ltd Company - if yes then what is the limit of this Loan amount.
3} Can a Director / Share holder borrow & give loan to a Public / Private Limited Company
Please advise ji
Thanking you with regards
Deepak kumarr
9381323258
A private limited company can take unsecured loan from its shareholders, directors and their relatives and the same would not be covered under section 58A and other deposit provisions as such transaction is exempt by deposit rules 1975. But if a private company take unsecured loans from persons other than its shareholders, directors and their relatives the same would be considered as a violation of section 3(1)(iii) of the Companies Act, 1956.
2. there is no limit on Loans taken from directors or shareholders in the case of a private limited company .
3. On the other hand amount taken by public company from individual is not covered in the exemption given by the said rule, hence amount taken by public company from individual is considered as deposit under section 58A read with Companies (Acceptance of Public Deposit) Rules, 1975.
with regards
Querist : Anonymous
Recd your reply & thank you for the same .
One of our friend told that a Pvt Ltd company can take loans from the share holders but to the maximum extent of their own Capital { ie : they cannot give Loan from Borrowed Funds }. If the above rules applies do v have to take any Declaration from the Share holder .
Do the same rule applies for a Director also - Please advise .
Thanking you with best regards
Deepak kumarr
Click here to login now
Similar Resolved Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Issuing of delivery challan by seller of goods
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- EPF ECR NEW RULES Sep 17th 2026
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
