In the absence of an agreement, interest on a loan advanced by a partner to the firm is allowed at:

1. Most entitlements vanish when there is no deed, but interest on a partner's loan is the exception. 2. Section 13(d) of the Indian Partnership Act, 1932 allows interest on such a loan at 6 per cent per annum. 3. The textbook repeats this figure in its Points to remember and applies it in its worked illustration on the absence of a deed. 4. By contrast, no interest on capital, no interest on drawings and no salary are allowed without a deed. _Source: TN HSC Class 12 Accountancy (Samacheer Kalvi, Govt of Tamil Nadu), Unit 3 "Accounts of Partnership Firms - Fundamentals", §3.4 and §3.9_