INCENTIVE TO DIRECTOR

Whether a Company can pay incentives to Directors for providing collateral security against the loan availed?Under IT Act or Corporate Law is there any specific restriction?Company wants to give incentives @ 50% of the interest rate bank has advanced.Bank has lent at 8.5% so they want to give 4.25% per annum as incentives to the Directors who is providing collateral security.Is there any restrictions for this?