Security provided for Loan By Pvt. Ltd.

As per the provision of section 186 of the Companies act 2013, a Company can provide securities or gurantes in connection with the loan to any person or any other body corporate upto the limit specified as per  provisions of section 186(3) by passing board resolution and in excees of the limit by passing special resolution. Partnership firm is also included in body corporate as it has the seprate legal existence and entity.