alleryStart learning →Loans under s.186 cannot be at an interest rate below the yield on:
APrevailing RBI repo rate
BMatching-tenor Government security
CBank fixed deposits of 1 year
DCorporate bonds of AAA grade
Answer & Solution
Correct answer: B. Matching-tenor Government security
The rate cannot be lower than the prevailing yield of the Government Security closest to the loan's tenor.
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Related questions
Section 186(4) requires loans and investments to be disclosed in the:Maximum imprisonment for contravening s.186 per s.186(13) is:s.186(11) exempts lending by which company in ordinary business?The s.186 register of loans, guarantees and investments is kept at the:A company in default on repaying deposits may not give loans under s.186(8) until:Under s.186(5), a subsisting term loan needs prior approval of:Section 186(5): a Board resolution sanctioning a loan needs consent of:The s.186(3) limit check is waived for loans by a company to its: