Acceptance of loan by a finance corporatiion

Querist : Anonymous (Querist) 14 November 2011 This query is : Resolved
Sir,

One my client is running a finance corporation registered under Money Lending Act. It is a partnership firm. The firm wants to borrow funds for its business and one person is ready to lend Rs. 50 lacs through account payee cheque.

Can the firm take the loan? Is there any restriction from RBI or other authorities.

Kindly clarify.

Thanking you in advance.

Yours truly

P. Srinivasa

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Raj Kumar Makkad (Expert) 14 November 2011
Every firm is free to raise its capital by way of adopting legal means and there is no restriction of RBI in this regard even in the present case.