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Unsecured loan

R.MEENAKSHI SUNDARAM (ACCOUNTANT) (37 Points)

22 March 2017

Handloan is given by individual to another individual for running his business: Mode of getring the Loan through Cheque only

Q1. Is there any limit for getting unsecured loan? Can it be acquired from 2 or 3 members?

Q2. If we are getting loan from outside person any document is necessary? if so what are those documents?

Q3. Do we have to get PAN details of the person who is giving loan to us?

Q4. If such loan is acquired, can it be Interest Free or any interest is to be charged?

Q5. Can it be furnished in income tax return?

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3 Replies

CA V KARTHICK (Chartered Accountant in Practice) (506 Points)
Replied 22 March 2017

1.There is no limit for unsecured loans... only condition is that the amount of loan to be received and paid back through account payee cheque.
Recording loan amount in stamp paper & receiving PAN details will be be helpful.
3.The loan can be interest free or may be for interest... if it is for interest and it is paid through cheque and TDS is properly dedcuted... Interest expenses can be claimed..

1 Like

R.MEENAKSHI SUNDARAM (ACCOUNTANT) (37 Points)
Replied 23 March 2017

Thank you for your valuable reply... Sir.

Amit Kumar (MBA finance) (37 Points)
Replied 10 July 2017

Collateral against business loans was a practice which almost every bank and financial firm followed up until recent changes in financial and banking sector. Now CIBIL score and credit history plays a prominent role. There are unsecured business loans available for which you don’t need any collateral. Most common type of unsecured business loan is business lines of credit. You can get funds from your line of credit whenever you need like a credit card. But usually unsecured loans comes with a higher interest rate. Some of NBFC like Lendingkart are offering these business loans on less interest rates as well.