What are loan documents bank obtain from borrower

What are loan documents; Loan documentation means to show all the documents to bank or financial institutions for getting loan. These documents are very necessary for security of loan. If loan is given without documents, it is the chance that bank or financial institution will failure to get same loan from borrower.

What are loan documents is given below:

  1. Application in Letterhead Pad
  2. 1(one) copy passport size photograph of intending borrower(s) as well as guarantors(s).
  3. Valid Trade License
  4. Permission from bank legal advisor
  5. TIN certificate
  6. Bank statement for last 6 (six) months (if any)
  7. Partnership deed (in case of partnership firm)
  8. Memorandum & Articles of Association with certificate of incorporation  (in case of limited company)
  9. Certified copy of up to date list of directors (Form XII)
  10. Financial statement for last 3 years
  11. Project Feasibility Report for new project as well as  existing project.
  12. Quotation/ Pro-forma invoice of Machinery
  13. Machinery list with layout plan for installation.
  14. Original title deed
  15. Bia deed , CS, SA, RS & Hal Parcha, Mutation with DCR Upto date rent receipt
  16. Site Map/Municipal tax receipt
  17. Non-encumbrance certificate
  18. Approved plan for construction of building from the competent authority & estimate of cost of construction( in case of land owned by the project)
  19. Survey Report of the fixed assets of the project or other collateral security.
  20. Lease agreement (in case of rented premises)
  21. Copy of membership of appropriate association.
  22. CIB report of the borrower
  23. Registered Mortgage deed.

Credit lenders are required to evaluate the purpose of the loan in order to seek its possibility whether the credit requested is enough to finance the project to completion. The borrower is required to disclose how the loan will be used and provide a quote of the amount required to finance the project.

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