Charging of intrest by company

I want some body to help me in following case:

An EOU charged interest on loan given to its ditector, the company made some deposits in the bank and gets interest, the same rate of interest is applied while calculating the interest on loan. My question is whether  company can collect interets like this or if not charged interest on loan given to director what is the situation with respect to Income tax assessment. Kindly reply.

Thanks in advance

Bhushan