Bank loan to huf

This query is : Resolved 

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?

Neha Jain (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 (Expert)
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.

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 (Querist)
18 December 2011

ok...Thanks everybdy 4 ur valuable replies....

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