TRUST MEMBER CAN RECEIVE LOAN FROM TRUST
ONE OF MY CLIENT STARTED TEMPLE TRUST. HE IS THE MAIN SOURCE OF THE FUND TRUST ACTIVITIES. MEANS HE IS MAIN TRUSTEE. OTHER TRUSTEES ARE HIS RELATIVES OR FRIENDS. HE WANTS TO GIVE LOANS TO HIS TRUST MEMBERS THROUGH TRUST FUND. CAN IT BE POSSIBLE TO GIVE LOANS TO ITS MEMBERS. HE COLLECTS SIMPLE INTEREST FOR THE LOAN GIVEN. THE INTEREST WILL BE TRUST INCOME. SO I NEED YOUR GUIDENCE.
BUT CAN TRUST GIVE LOANS TO OTHERS MEANS FOR THE PURPOSE OF INCOME FOR THE TRUST.
is there any circular can be available for that
one of my relative going to started the trust. I have told him to as per the rules no trustee can avail loan from trust it is against rules. but he is misguided by the some one he does not have any idea of trust. he thought that I am misguiding him his friend is correct. so for the references I have asked the circulars.
thank you sir,