(To be verified before disbursement and safe custody)
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A. Sanction & Acceptance
☐ Sanction terms communicated to borrower in writing
☐ Written acceptance obtained from borrower
☐ Written acceptance obtained from guarantor (where applicable)
☐ Sanction letter and acceptance kept on record
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B. Stamp Duty & Stamping
☐ Document stamped before or at the time of execution*
☐ Execution date is not earlier than stamp paper date
☐ Correct stamp duty paid as per State of execution
☐ Stamp paper purchased in the name of executant(s)
☐ One stamp paper used for one instrument only
☐ Impressed stamp visible on face of the document
☐ Each impressed stamp sheet contains writing
☐ No stamp paper purchased in third-party name used
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C. Filling & Signing of Documents**
☐ Executants have read and understood the document
☐ Same pen and ink used throughout printed stamped forms
☐ No blanks left unfilled
☐ If blanks filled by others, executant’s signature obtained nearby
☐ Full signatures (not initials) on all pages
☐ All cuttings/overwriting/interlineations authenticated
☐ Place, date, month, and year clearly mentioned
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D. Capacity & Competence of Executants
☐ Executant is a major and competent to contract
☐ Executant is not intoxicated at time of execution
☐ Executant is not a minor, lunatic, or undischarged insolvent
Special cases:
☐ Married woman has independent estate verified
☐ Illiterate/vernacular executant:
☐ LTI/RTI properly marked
☐ Certificate of contents read & explained obtained
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E. Execution Control
☐ Documents executed in presence of authorised bank officer
☐ Documents not handed over for outside signatures
☐ All signatures obtained in one sitting
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F. Entity-Specific Verification**
Sole Proprietorship
☐ Executed with property stamp (representative capacity)
Partnership Firm
☐ All partners have signed OR authority letter obtained
☐ Personal guarantees of all major partners obtained
☐ No guardian signature taken for minors admitted to benefits
Company
☐ Board Resolution obtained and verified
☐ Authorised signatories match Board Resolution
☐ Common seal affixed only if required by Articles
☐ Names of officers present at seal affixation recorded
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G. Security & Mortgage Documentation
☐ Properly stamped mortgage deed / memorandum obtained
☐ Registration fee receipt attached (if registered)
☐ Boundaries and area match title deeds
☐ Encumbrance Certificate (last 13 years) obtained
☐ Latest property tax receipts verified
☐ All original title deeds deposited with bank
☐ Legal opinion and valuation reports on record
☐ Second charge / pari-passu charge / NOCs verified
☐ Mortgage created only by authorised persons
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H. Special Compliance
☐ DPN obtained
☐ Letter of continuity obtained (for running accounts only)
☐ Documents executed outside India stamped within 3 months of receipt
☐ Mortgage registration completed within 4 months
☐ ROC charge registration completed within 30 days (companies)
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I. Limitation & Post-Documentation
☐ Revival letters obtained before expiry of 36 months
☐ Balance confirmation obtained (preferably half-yearly)
☐ Documents cross-checked by second officer
☐ No pencil entries or blanks before safe custody
☐ Documents preserved neatly in identifiable folder
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Staff Reminder
> *Defective documentation may result in loss of legal enforceability and recovery.*
Meticulous execution, verification, and preservation of loan documents are non-negotiable responsibilities of every banker involved in credit operations. For more details read the following article.
PERFECTING LOAN DOCUMENTATION: A PRACTICAL COMPLIANCE CHECKLIST FOR BANKERS
Disclaimer:
This article is intended for staff training and educational purposes only and does not constitute legal advice. Readers should refer to the Limitation Act, 1963, Stamp Acts, Companies Act, 2013, and relevant judicial precedents for case-specific guidance.
