Overdraft and business loan

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies the implications of taking out an overdraft and business loan for a proprietorship. It confirms that you can continue using existing current accounts with other banks and retain these facilities even if you become an NRI. The primary impact on your personal banking is on your credit rating, as your PAN remains the same across accounts.

Rahul Singh

Rahul Singh (Querist)
Follow

30 July 2021 if i avail overdraft and business loan on proprietorship current account (abcd name) from bank then

a) can i continue using existing current accounts with other banks in same name (abcd)?
b) if I become nri then will it be possible to continue that od and loan?
c) what affect od will make on my personal banking or any other current account with different name or same name?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

30 July 2021 a yes you can do so.
b yes you can continue.
c It will affect your credit rating, PAN will be the same

Rahul Singh

Rahul Singh (Querist)
Follow

30 July 2021 but sir isn;'t there a rule which says that if you have od from any bank you cannot open any new bank account. is that so?

what are other banking effects?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

30 July 2021 With the consent of the bank for operative reasons we can open current account with other banks.

Rahul Singh

Rahul Singh (Querist)
Follow

31 July 2021 thank u so much sir.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now