Financing & Investment

Founder / Director Loan Agreement

For a founder lending money to their own company β€” structured to stay compliant with deposit rules, not just assumed exempt.

  • Deposit Rules compliance built in, not assumed automatic
  • Clear interest terms and repayment schedule
  • Director disclosure requirements under the Companies Act
  • Distinguishes a genuine loan from a disguised equity contribution
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βœ“ Main agreement (PDF)
βœ“ Repayment schedule template
βœ“ Verification Passport (below)
Who this is for

Founders lending to their own company

Founders providing working capital to their company as a loan rather than additional equity investment.

Early-stage companies

Companies needing to formally document founder-provided capital for accounting and compliance purposes.

Verification passport

What we actually checked, and when.

Live verification record FOUNDER / DIRECTOR LOAN AGREEMENT
Researched and verified by Rakesh Jaiswar, LLB student, Mumbai
Deposit exemption for director/founder loans
Companies (Acceptance of Deposits) Rules, 2014 Β· checked 1 Sep 2026
βœ“ VERIFIED
Director loan disclosure requirement
Companies Act, 2013, Sec 185-186
βœ“ VERIFIED
Interest terms, arm's-length structuring
Indian Contract Act, 1872, general principles
βœ“ VERIFIED
A founder loan to their own company is not automatically exempt from deposit rules just because it's the founder's own money β€” it still needs to satisfy the specific conditions under the Deposit Rules to avoid being treated as an unlawful deposit. This template is structured with that requirement in mind.
Before you sign this document:
1. Update the jurisdiction. This template is drafted with placeholder city/state fields β€” replace them with your own business's actual location, not any example city shown in the document.
2. Print on valid stamp paper. This PDF is a drafting template, not an executable legal document on its own. Under the Indian Stamp Act, most agreements need to be printed on physical stamp paper (or e-stamped) of the correct value for your state before signing β€” an unstamped agreement may be inadmissible as evidence until the deficiency is paid. Confirm the correct stamp duty and process for your state before execution.
Annual updates

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