A private limited company cannot accept secured/unsecured loan from any individual.
Chapter V (sections 73 to 76A) of Companies Act, 2013 and The Companies (Acceptance of Deposits) Rules, 2014 deals with Acceptance of Deposits by Private Limited Companies. In brief, the following table provides a brief overview of the acceptance of loans by private limited companies:
Sl No
|
Loan From
|
Conditions
|
1
|
Shareholder/Member
|
Yes, can accept subject to conditions specified in Deposit Rules
|
2
|
Director/Relative of Director
|
Yes, can accept subject to the condition that the Director/relative of director shall give a declaration in writing that the money is given out of own funds and not out of borrowed funds
|
3
|
Employee
|
Yes, can accept up to the employee’s annual salary ( there should be a contract of employment with the company) in the nature of non- interest bearing security deposit
|
4
|
Any Other Individual
|
No cannot accept
|
5
|
Banks/other financial institution
|
Yes can accept
|
6
|
Any Company
|
Yes can accept subject to lender complying with conditions specified in section 179(3) and section 186 of Companies Act, 2013
|
October 7, 2021 at 11:01 am