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

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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.