Audit of loan documentation in banks
Sumit Agarwal (CA Final Student) (79 Points)
06 December 2015Sumit Agarwal (CA Final Student) (79 Points)
06 December 2015
Gaurav Verma
(none)
(198 Points)
Replied 06 December 2015
harish sama
(Article assistant)
(81 Points)
Replied 07 December 2015
That is the least possible scenario to the best of my knowledge, because most of the banks has a practice, that the bank agrees to pay say 80%/85% of the total price of the asset, what banks do is they will take the margin amount(the amount the bank's customer agrees to pay) from the customer and the bank will pay the whole amount to the seller of the asset, also the bank keeps with it the invoice raised after payment which will show the cost of asset. As you said that the bank manager and the customer might come into an agreement, I think that is not possible unless all the employees have colluded to get mutual benefit
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