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I am a full time Director for the company and I have been sanctioned a loan of Rs.20 lakhs from a financial institute on my personal name. But the loan is intended for the purpose of the company and who to make the company responsible for the repayment of the loan.
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if loan was granted in the name of company's director then No company can accept the same loan from director as per company act. 2013
Thanks & Regard
Devesh Chauhan
Practicing in Accounts, Finance, Taxation, Labour Laws
Since you have taken a loan in your name, you are alone are responsible for paying it back. The company can not be liable to repay the same. They have all the right to refuse to pay, and the lender has no right to claim from the company
Unless you own the company and fully control it, it is very dangerous for you to take all known in your name for the business.
In any case, a company can no longer take a loan from anyone other than bank or NBFC. It can take a loan from a director or,shareholder only if the money being lent didn't come from any other person as a loan.
Loan was taken for what purpose in your name? Also, whether it was secured or non-secured? Of secured, what was the security you offered to the financial institutions?
Althoough there are several such things you will have to make clear. So, would you like to clarify the above points? Mere a casual academic question cannot get appropriate response.
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