The documentation applicable for advances is given in an Advance Manual and the circular of the banks. The main framework documentation is according to the advances manual of a bank.
The following are the required Documentation For Advances In Banks:
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Acceptance of the sanction letter containing the terms and conditions for a particular advance sanction.
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Demand promissory note that is required to undertake that the borrower is capable to repay the amount mentioned in this note by the bank.
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Hypothecation Agreement represents the goods, items, movable or immovable assets to the banks. This type of documentation is generally taken for security like stocks, vehicles, book debts, and so on.
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Collateral of assets which represent, that the dues can be recovered by method of sale of the assets, which are given by the borrower to the lender or in banks as security
Kotak Mahindra Bank Personal Loan
There are two types of mortgages for Documentation For Advances in banks:
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Equitable mortgage
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Registered mortgage
An equitable or simple mortgage is a simple way of holding the original title of the property of banks.
A registered mortgage is that in which mortgage title should be registered with the registration authority.
Guaranteed agreements are executed by the guarantor of the borrower to undertake his ability in case he fails to respect the loan amount repayment commitment.
Access /agreement letter in case the hypothecated goods are stored at rented go downs.
AOD (Acknowledgement of debts to be given by borrowers for the continuance of executed documents.
In the case of Pvt. Ltd. Company Documentation For Advances In Banks:
In the board meeting regarding, acceptance of terms and conditions of sanction, extract of a resolution passed. That means the borrowing will be in particular limits and permissible under the particular clauses of the Association.
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Create the charge on assets of the company with ROC to the extent of total borrowings. Charge registration certificate.
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A certified Copy of the Memorandum and Articles of Association will be required.
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An incorporation certificate will be required.
In case of partnership firms Documentation For Advances In Banks:
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A partnership registration certificate with the registrar of a firm is mandatory.
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A partnership deed is expected authenticated.
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LLP documents
In case of HUF for Documentation For Advances In Banks:
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A list of coparceners
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Liability agreements of Coparceners.
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