Section 2(7) in The Punjab Regulation of Accounts Act, 1930
(7)"Loan" means an advance whether of money or in kind at interest and shall include any transaction which the court finds to be in substance a loan, but it shall not include -(i)a deposit of money or other property in a Government Post Office Bank or any other Bank or in a company or with a co-operative society;(ii)a loan to or by or a deposit with any society or association registered under the Societies Registration Act, 1860, or under any other enactment;(iii)a loan advanced by [the Central or any [State Government] [Substituted for the word 'Government' by the Government of India (Adaptation of Indian Laws) Order, 1937.]or by any local authorised by [the Central or any [State] [Substituted for the word 'Government' by the Government of India (Adaptation of Indian Laws) Order, 1937.] Government;(iv)a loan advanced by a bank, a co-operative society or a company whose accounts are subject to audit by a certificated auditor under the Companies Act;(v)a loan advanced to a trader;(vi)an advance made on the basis of a negotiable instrument as defined in the Negotiable Instruments Act, 1881, other than a promissory note;(vii)a transaction which is, in substance, a mortgage or a sale of immovable property.
