Company · Money in
We took a loan from a director or shareholder — is that a 'deposit'?
The short answer
A loan from a director or shareholder is not treated as a deposit if the director gives a written declaration that the money is not sourced from borrowed funds — that is the condition under Rule 2(1)(c)(viii). The board must approve the borrowing under Section 179(3)(d). Even exempt borrowings must be reported: DPT-3 covers them on a one-time and annual basis for the relevant financial year.
What gets filed with MCA
By June 30 every year, for the position as of March 31.
Section 73(2)(e) and Rule 16, Companies (Acceptance of Deposits) Rules 2014
Legacy/transitional form — filed within 3 months of the Companies Act 2013 commencement.
Section 74(1), Companies Act 2013 (transitional provision)
The paperwork nobody tells you about
Statutory formats that never touch the MCA portal — but an ROC inspection or due diligence will ask for every one of them.
Written declaration that the money lent is not from borrowed funds — the condition that keeps a director loan out of 'deposits'
Rule 2(1)(c)(viii), Companies (Acceptance of Deposits) Rules, 2014
Board approval of the borrowing
Section 179(3)(d), Companies Act 2013
The sequence
- 1Pass a board resolution approving the borrowing under Section 179(3)(d)
- 2Obtain a written declaration from the director that the lent money is not from borrowed funds
- 3Document the loan terms — amount, interest, and repayment schedule
- 4File DPT-3 reporting the borrowing within the statutory window
- 5File DPT-3 annually for each financial year covering exempt borrowings
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Questions founders actually ask
When does a director loan count as a deposit?
A director loan escapes the deposits regime only if the director gives a written declaration that the money is not sourced from borrowed funds, under Rule 2(1)(c)(viii) of the Companies (Acceptance of Deposits) Rules 2014. Without that declaration, it may be classified as a deposit.
Do we still file DPT-3 for an exempt director loan?
Yes. DPT-3 covers even exempt borrowings — both as a one-time filing and as an annual return for each financial year. Shareholder loans to a private company have their own exemption conditions.
Does the board need to approve a director loan?
Yes. Board approval of the borrowing is required under Section 179(3)(d) of the Companies Act 2013.
Reviewed by Harun Raaj, Chartered Accountant
Founder, Harun Raaj & Associates. Last verified 2026-08-24 against MCA V3 records and ICSI reference material. Form-level deadlines and penalties live on the linked form pages and update there.