Intresrt free loan to director

Section 185 i.e. Loan to directors - is not applicable to a private company - 

a. In whose share capital not other body coprorate has invested any money;

b. If the borrowings of such a company from banks or financial institutions or any body corporate is less than twice of its paid up sharecapital or fifty crore rupees, whichever is lower; and

c. Such a company has no default in repayment of such borrowings subsisting at the time of making transactions under Section 185.

This exemption has been provided as per the notification dated 5 june 2015. If the above conditions are fulfilled then the private  company can give interest free loan to director.