Can Pvt Ltd take Loan from public?

Paras K (Self-employed) (52 Points)

16 April 2021  

Hi everyone,

I would be glad if you could answer these queries for me:

  1. Can a Pvt Ltd accept loan from individuals who are neither directors or shareholders or their relatives?
  2. Can a Pvt Ltd accept loan from members? If yes, then
    1. Does the loan need to be notified to ROC?
    2. What is the limit of loan that can be accepted?
    3. Can interest free loan be given? If not, then what is the minimum rate of interest?
  3. What is the formalities to be kept in mind while taking such loans? Eg. Board resolution, filing with ROC, disclosures etc.

I will be glad if you could quote sections/notifications as well. So that I can refer them for better understanding. Thanks.