Loan given to builder

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alpesh (Querist)
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30 April 2015 sir,my closing capital RS 825620 and cash balance Rs 325000 how much amount i can give loan to builder whether cash balance is necessary to give loan RS 825620

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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30 April 2015 1. You can give Rs. 325000 out of your own available cash balance.

2. There is not necessary to have adequate cash balance to give loan of Rs. 825,620/-

In case, you have adequate cash balance, then you can give loan out of your own fund.

In case, there is no adequate fund, you can borrow from others (your friends, relatives as well as Banks etc) and give a loan to your builder