I have purchased machine of 10lakh from related party. If I take loan from bank on this machine for 25lakh. Will there be any issue as the purchase is clearly underinvoiced as per bank valuation.
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Quick Summary
This discussion explores the possibility of obtaining a secured loan for an amount greater than the asset's stated value, particularly when the asset was purchased from a related party at a potentially underinvoiced price. While the initial query suggests a loan of £25 lakh on a £10 lakh machine, the consensus is that banks typically won't lend more than the asset's assessed value. Instead, they might require additional security or a guarantor with a strong income.
Bank will not give you loan on the undervalued bill they will ask you for 30 to 40 lakh as in security or ask for gaurantor who have good source of income to repay the money if you failed and other terms are there also