Bank loan to huf

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Kamaldeep Singh (Querist)
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17 December 2011 Hello everybody.Well my knowledge regarding HUFs is not very sound and I have come across a question that why Banks don't take much interest in granting any loan to HUFs. Well is this true??? and if it is wat are the reasons behind it...?
I need help...can somebody please explain this?
Thanks.

Guest

Guest (Expert)

17 December 2011 Since HUF credibility and creditworthiness are not very good in the market so banks are reluctant to give loans to HUF.

CA Hardik Bunha

CA Hardik Bunha (Expert)
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17 December 2011 Scope of Huf is limited. It is true that HUF is One seperate entity for income tax but overall it is nothing.

CA VISHAL RANA,CS,B.Com,AMFI

CA VISHAL RANA,CS,B.Com,AMFI (Expert)
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17 December 2011 agreed with experts

because HUF has artificial status in income tax act...trend of HUF start because HUF easy to form and profits exempt in the hands of members of huf.

Kamaldeep Singh

Kamaldeep Singh (Querist)
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18 December 2011 ok...Thanks everybdy 4 ur valuable replies....