NBFC interest free loan

[puja mohan]

The text of Section 186:

(11) Nothing contained in this section, except sub-section (1), shall apply—

(b) to any acquisition—

(i) made by a non-banking financial company registered under

Chapter IIIB of the Reserve Bank of India Act, 1934 and whose principal business

is acquisition of securities:

Provided that exemption to non-banking financial company shall be in

respect of its investment and lending activities;

does this mean that the NBFC which is into business of lending, can give loan at no or lower than normal interest rates, Since 186 (7) about interest shall not apply?

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Regards,

Puja Mohan,

Company Secretary

[puja mohan]