Rate of interest on loan given by holding company to its subsidiary

Learned members,

Please advise how to determine the minimum rate of interest on loan to be charged by holding company to its subsidiary under section 186(7).

As per section 186(7), no loan shall be given under this section at a rate of interest lower than the prevailing yield of one year, three year, five year or ten year Government Security closest to the tenor of the loan.

Date of loan agreement: December 9, 2021

Term of loan: 3 years

Regds,

Arjun