Rate for lending
This query is : Resolved
Guest
Guest
(Querist)
15 July 2010
Dear Experts,
I would like to know the rate at which loans can be granted by bodies corporate to other corporates under the same group.
Further, does any section under the Companies Act limit the rate of interest payable by a Private Company. Please help me with the section.
Also, can a Holding company give an interest free loan to its Subsidiary or a minimum rate is specified.
Thanks in anticipation.
I would like to know the rate at which loans can be granted by bodies corporate to other corporates under the same group.
Further, does any section under the Companies Act limit the rate of interest payable by a Private Company. Please help me with the section.
Also, can a Holding company give an interest free loan to its Subsidiary or a minimum rate is specified.
Thanks in anticipation.
15 July 2010
NORMAL RATE FOR INTERCOPRATE LOAN IS 12%
15 July 2010
NO COMPANY ACT NOT SPEICFY ANY INTEREST RATE.
IT DEPENDS ON MARKET .
AS PER MY OPINION, ONE COMPANY CAN'T GIVE INTEREST FREE LOAN TO OTHER COMPANY WHETHER IT SUBSIDIARY OR HOLDING.
OTHER EXPERT'S VIEWS ARE SOLICITED.
IT DEPENDS ON MARKET .
AS PER MY OPINION, ONE COMPANY CAN'T GIVE INTEREST FREE LOAN TO OTHER COMPANY WHETHER IT SUBSIDIARY OR HOLDING.
OTHER EXPERT'S VIEWS ARE SOLICITED.
Guest
Guest
(Querist)
15 July 2010
Thanks for the reply!!!
Could you please specify the section. Coz i believe that the minimum lending rate should be the Bank rate which is 6%.
Please confirm
Could you please specify the section. Coz i believe that the minimum lending rate should be the Bank rate which is 6%.
Please confirm
15 July 2010
Upto 30th June 2010, BPLR rate of bank is 12%.
From 1st July 2010, Base rate concept is coming, as per this rate is presribed 6 to 8% .
The base rate, the floor below which a bank cannot lend even to its top-most client, is arrived after factoring in a bank’s cost of funds and other operating expenses. It is effective Thursday and replaces the much-abused benchmark prime lending rate (PLR).
hence as per my opinion , 12% p.a (1% pm) is normal lending rate in market.
From 1st July 2010, Base rate concept is coming, as per this rate is presribed 6 to 8% .
The base rate, the floor below which a bank cannot lend even to its top-most client, is arrived after factoring in a bank’s cost of funds and other operating expenses. It is effective Thursday and replaces the much-abused benchmark prime lending rate (PLR).
hence as per my opinion , 12% p.a (1% pm) is normal lending rate in market.
Guest
Guest
(Querist)
15 July 2010
Hi,
As per query on 11/04/2010, expert Kartik_somu specified Rs. 6% as the lending rate, ie. the rate at which RBI grants loans to commercial Banks.
Please help
As per query on 11/04/2010, expert Kartik_somu specified Rs. 6% as the lending rate, ie. the rate at which RBI grants loans to commercial Banks.
Please help
15 July 2010
Our group have 15 Company in which if we take loan/ depoist from other corporate or ousider, we provide 12% last 6 years.
It is acceptable by IT authority also.
It is acceptable by IT authority also.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Sales return eway bill
- TAN for Partnership
- GST ON DAMAGED GOODS
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Plot of land. Cost of Acquisition
- LTCG for Assmt year 26-27
- Treatment of Pension ?annuity returns on PMVY
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
