In March 2006, it was revealed that Patel, a Labour nominee for a life peerage, had made a loan of £1.5m, at commercial rates, to the Labour Party in summer 2005. The House of Lords Appointments Commission, which vets nominations for peerages, was reported to be against Patel's candidacy. Patel said that he made the loan following a request, but never expected anything in return. The Labour Party defended the loan, asserting that no rules had been broken. Patel's name was submitted by Downing Street for a peerage two months after the loan.