Loan Agreement — Director to Company

Simple unsecured loan agreement recording money a director lends to their own private limited company — amount, interest, repayment, and the Companies Act declaration that keeps it out of the deposit rules.

Use this when

A director is putting personal funds into the company as a loan (not share capital). Banks, auditors and DPT-3 reporting all expect this paper trail plus the director’s declaration.

Stamp duty & execution

Execute on non-judicial stamp paper per your state’s rate for loan/agreement instruments (commonly nominal; verify locally), or letterhead with stamping where practice permits. Pair with: (a) the director’s written declaration that the amount is not out of borrowed funds (Rule 2(1)(c)(viii), Companies (Acceptance of Deposits) Rules, 2014); (b) a board resolution accepting the loan under section 179(3)(d); and (c) disclosure in DPT-3 and the financial statements. Interest paid attracts TDS under section 194A where applicable.

General-purpose format, updated 2026-08. Not legal advice for a specific matter — fields in [BRACKETS] must be completed and clauses adapted to your facts and state before execution.

LOAN AGREEMENT

This Loan Agreement is made at [CITY] on [DATE] between:

(1) [DIRECTOR NAME], s/o–d/o [___], PAN [___], residing at [ADDRESS], a director of the Borrower (the "Lender"); and

(2) [COMPANY NAME], CIN [CIN], having its registered office at [ADDRESS] (the "Borrower").

More in Company Secretarial

Board Resolution — Opening & Operating a Bank AccountYour company is opening a current account, changing authorised signatories, or adding internet/corporate banking users — the bank will ask for exactly this document.Board Resolution — GST Registration & Authorised SignatoryA company (or LLP, adapted) applying for GST registration or changing the authorised signatory on the GST portal — upload this with the application.

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