As per the Companies Act 2013, Private company can borrow only from directors apart from banks and financial institutions provided the director gives declaration that the amount that he is giving is not out of borrowed funds.
So Private limited company can not take unsecured loan as per section 73.
No, Private Companies can not take loans from HUF. However, if HUF is a shareholder of such Company, then it can take loan from HUF upto 100% of Paidup capital and free reserves.
| Originally posted by : CA VIRAL SANGHVI | ||
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As per the Companies Act 2013, Private company can borrow only from directors apart from banks and financial institutions provided the director gives declaration that the amount that he is giving is not out of borrowed funds. So Private limited company can not take unsecured loan as per section 73. |
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Hi Viral,
Kindly quote the relevant section.
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