how to identify multiple loan taken by single person.

This query is : Resolved

raj raiya (Querist)
Follow

04 July 2010 Respected, sir/madam
while doing documentation of loan sanctioned by bank to any person other than company, it becomes difficult to identify the other loans taken by that person fro different banks.
how to identify the same?
My method is to go through the financial statement submitted by the borrower or to identify it by viewing account operation,
Banks usually take the disclosure of assets & liabilities from the borrower, but what if the borrower does not disclose the same?
Is there any report like R.O.C details in case of company to view the charge over its assets.

Ashok Malhotra

Ashok Malhotra (Expert)
Follow

04 July 2010 You can start with list earning family members and their profession and their source of income and bank details.

To my mind, if you ask the prospective borrower what are his sources of income and which bank does he deposit the same, you can find out as to whether he has taken multiple loan. The repayment of laon will definitly be from any of his bank accounts and that will be shown in the bank statement.

For car loan or housing loan, ownership documents as well as insurance covers will show that loan has been taken or not.

For clean credit, you may refer to Credit card statments as well.

PAN is essential if there is Cash Deposit is over Rs. 50000/-. That will provide additional evidence that the borrower is a tax payers.

However loan taken in cash and repaid in cash will be dificult to trace.

In any case if the prospective borrower has decided not to disclose some of the critical information or reluctant to disclose, why will the lender will extend loan at the first place itself.

There is no concept of ROC or charge on its assets for individuals.

I hop[e I have covered all possible situations.

CA Ashok K Malhotra (FCA)