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Unsecured loan from pvt ltd
"To earn interest" if u are giving loan then your objective of business has to be checked.
A PVT LTD CAN GIVE SUCH LOANS .. BUT IT SHOULD BE IN IT'S ARTICLES OF ASSOCIATION TO GIVE LOANS TO EARN INTEREST OUT OF EXCESS LIQUIDITY. IT'S LIKE INVESTMENT ONLY....
THANK YOU,
DRP
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Yes you can...provided that transaction is not a sham transaction and if the individual is the director of the company... be careful with the deemed dividend provisions in the hands of the directors...
3 things has to be analysed in the question. One is its object clause. Two whether there is any restriction in the Money Lending Act and three whether the provision of NBFC is applicable. Initially it should be analysed whether the articles included such an object clause. Then it should be verified any restriction in money lenders or other similar acts. Then also check whether the provisions of NBFC will attract or not
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