Accept of unsecured loan

As per companies act 2013, private co. can accept unsecured loan from directors only but after mca circular on 15th september 2015 w.e.f this date private co. can accept unsecured loan from directors and director's relatives.

Provided that the director of the company or relative of the director of the private company, as the case may be, from whom money is received, furnishes to the company at the time of giving the money, a declaration in writing to the effect that the amount is not being given out of funds acquired by him by borrowing or accepting loans or deposits from others.