When the partnership deed is silent about interest on loans advanced by partners, the Indian Partnership Act, 1932 provides specific guidelines under Section 13(d).
According to this provision, interest is allowed at 6% per annum on any loans advanced by partners to the firm, in addition to their capital contribution.
It's important to understand that this applies specifically to loans (which are over and above the capital contribution) and not to capital itself. When the deed is silent, no interest is allowed on capital, but interest on loans is specifically provided for at 6% per annum.
This is a statutory provision that applies automatically when there is no contrary agreement in the partnership deed.
Correct Answer: Option 2 (6%)