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
Rate of interest shall not be lower than the prevailing bank rate, being the standard rate made public under section 49 of the Reserve Bank of India Act, 1934
Comparison of Section 186 of Companies Act, 2013 and Section 372A of Companies Act, 1956. | R & A Associates (rna-cs.com)
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