Acceptancce of Loan from NRI

Amit (84 Points)

10 May 2007  
Your esteemed views are required for a problem: If a proprietorship firms accepts a loan of Rs.5.00 Lacs from NR account held in India of an NRI an dpays inetest @ 10%, is this permissible under law? What responsiblities accrue on firm? Pl. comment.