Loans must be made available to illiterate customers as are offered to other customers. Their inability to read the contents of document and execution thereof should not be a criterion for sanctioning/denying a loan. As far as execution of documents there is no distinction under law, between a literate and illiterate person. Therefore, the requirements…
[This article explains on grading of borrowers who have a short credit history, how the credit score is calculated, factors considered for calculation of scores, the important aspects to see in the CIR] The loan applicant’s credit scores work as the first impression for any lender. Normally, the lender would evaluate other details of the…
[This post answers on many questions like ‘What is a PSL certificate?’, ‘Who needs PSLCs?’, ‘How the limit for issuance of each category of PSLC is decided?’ ‘How the PSLC transactions are computed for determination of PSL target/sub-targets?’, ‘Is there any expiry date to PSLCs?’, ‘Whether the loan assets or risks of loan defaults are…
A revenue Stamp can be explained as a receipt given by the Government in the form of small adhesive stamp in lieu of separate document stating that the tax/fee has been paid to the Government. The receipt for above certain amount shall be mandatorily acknowledged by the receiver affixing and cancelling the revenue stamp. Under…
The non-judicial stamp papers, in the form of engraved, embossed or franked on papers have been used to pay the stamp duty under Indian Stamp Act 1899. Nowadays maximum usage of stamp papers is in the form of e-stamping in lieu of prevalent engraved stamp papers, embossed stamp papers and franked stamp papers. The e-stamping…
(The article gives the insight of important points to be borne in mind at the time of execution of loan documents with a to z check-list.) The system of obtaining proper documents as per sanction terms is called documentation.Without the proper documents, it is hard to create a legally enforceable charge on the security offered. Selection…
[This article elucidates details of three categories of stamp duties in relation to transaction type, on adjudication, impounding of documents and also refund of unused stamp papers. The idea of Government raising revenue by way of stamp duty from the transactions of its citizen said to be originated in Holland in the early sixteenth century.…
The Government of India recently approved the repealing of all earlier schemes under existing National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS). A new Insurance scheme called “Pradhan Mantri Fasal Bima Yojana (PMFBY) is put in place which replaces the old schemes from Kharif 2016. For all loanee farmers who borrow…
The diversion of funds means utilization of funds by the borrower in deviation of sanction terms of the lender, including any of the following occurrences. The credit facility extended for the working capital purposes, used by the unit for long term purposes, which is not in conformity with the sanction terms. The unit deploys borrowed…
[The identification of a ‘wilful defaulter’ is done on the basis of eventual conclusion that the default is intentional, deliberate and calculated. The process of categorizations of the ‘wilful defaulter’ is required to be done thoughtfully on the basis of track record of the borrower/guarantor and not on the basis of an isolated transaction or incident.…