Loan from individual to a pvt. ltd. company

ASHISH ARAT (CA Finalist) (59 Points)

21 March 2023

Can a pvt. ltd. company receive a loan from an individual?

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3 Replies

Yasaswi Gomes new (Finance ) (2339 Points)
Replied 22 March 2023

Yes. You can take that loan

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Rakesh Ishi (Working at Private Company) (5884 Points)
Replied 23 March 2023

Yes, a private limited company can receive a loan from an individual. Private limited companies are legal entities and can enter into contracts with individuals, including borrowing money. However, there are certain legal and regulatory requirements that must be followed when a private limited company receives a loan.

For example, the loan must be documented with a loan agreement that sets out the terms and conditions of the loan, such as the interest rate, repayment schedule, and any security or collateral that is required.

Additionally, the company may be subject to certain laws and regulations that govern borrowing and lending, such as the Companies Act, 2013, and the Reserve Bank of India's guidelines on external commercial borrowings.