Availaing Loans from Individuals
sanjeer
(Querist) 18 October 2009
This query is : Resolved
I want to start an entreprenuership.Since I have a few friends who are HNIs I would like to take a certain amount of money on a loan basis from them. But my question is:
1. As per the laws am I allowed to recive loans from indivsuals or is it manadatory that I should approach an acredited bank/financial institution for loans? (I would prefer to go to my friends)
2.Is taking loans from individuals is not allowed, can I receive the said amount from them as Investments in my business..?
3.If I am allowed to receive investments from individuals, then is it matdatory that they should be made my partners? can I not keep them just as Investors and not partners..?
Thanks and Regards
Guest
(Expert) 18 October 2009
1. It is not mandatory to avail loans from bank. One can receive loans from individuals also. Provided, if the person lending the money is a NRI or a foreign national, due permission from RBI and the Govt (under FEMA) regulations is mandatory;
2. An individual can receive the loan amount as an investment to his business;
3. To make anyone as business partners, it is the will & wish of the persons concerned. But, when an investment (by way of instrument in writing) is received, it is deemed as they are partners to the business.
joyce
(Expert) 18 October 2009
Its not mandatory to make them as a partners in ur firm, u can just keep them as an investors. Is the person who issues fainacial help claims that he need to be the partner? then partnership agreement can be made. the other two answers I agree with R. Siva Subramanian.
Sachin Bhatia
(Expert) 24 October 2009
Its not mandatory to make them as a partners in ur firm, you can just keep them as an investors.
