Inter-corporate loan

Yes, Pvt co. can take loan from another Pvt. Company. But Loand provider Pvt co. can provide loan up to 60% of net worth or 100% of free reserves. (Section 186 of Companies Act,2013)

Is there any limit for the company receiving the loan?? Like, 25% of its Paid-up Capital and Reserves??

Hi,

there is no restriction on taking loan...however, for company providing the loan, check the requirements of section 186 of the CA 2013......and for company receiving the loan, check the requirements u/s 180(1)(c)....

No, There is no restriction for company receiveing loan from other company.

25% of paid up capital is applicable to loan form shareholders...