Loan on company's property
resham
(Querist) 13 August 2012
This query is : Resolved
a sole prop trading concern approaches for a credit facility against scurity(Property) in the name of company in which the prop is a director
1 whether the loan can be given ?
if yes the precautions to be observed /any other specific papers to be taken
Raj Kumar Makkad
(Expert) 13 August 2012
It depends upon the financer to see whether to grant loan in the given circumstances or not. Sole Prop and individual concerned is same so it is better to advance loan in the name of individual instead of his so-called company. The land papers of the security property should be gone through in depth and registered mortgage deed should be duly registered. apart from this advance cheques should also be taken along-with advance undated confirmation letters of the outstanding amount.
