banner_ad

Audit - Term Loan

3623 views 3 replies

Hello Friends,

Can u tell, while conducting a final audit, how to verify a Term Loan for any defaults when it is at Floating Rate of interest? Would there be a repayment schedule pre fixed by the bank as in case of Fixed Rate of interest? Then how does the payer usually know how much to pay?

Replies (3)

in case of floating rate of interest, the interest portion is changed at every interval, and its intimated to the party, party is set free to pay the principal amount yearly set up in emi basis or in installments as they wish, but all such transactions are made with direct debit to the account maintained with the same bank.

you can ask the bank for details of pricipal and interest portion for any specific year or period

Thank u for ur reply....When u say direct debit, does it mean the bank will debit the account in which the loan money is held by the client?then, as long as there is balance in that account,the bank will automatically debit the interest portion is it? further, is it enough to ensure that in the e-banking statement the drawing power equals the Present balance outstanding?would that suffice?

Originally posted by : Ajay

Thank u for ur reply....When u say direct debit, does it mean the bank will debit the account in which the loan money is held by the client?then, as long as there is balance in that account,the bank will automatically debit the interest portion is it? further, is it enough to ensure that in the e-banking statement the drawing power equals the Present balance outstanding?would that suffice?

banks usually allow loans in relation to a bank account maintained with the bank branch, and deduct the interest from that account only, (NO EMI CHEQUES) 

 

you have to ask bank for detailed statement of your loan interest and principal repayment break up for any specific year / period.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
07 May 2026
CA Assistant

amit desai and co

Mumbai

CA Final

View Details
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
02 May 2026
Experience Audit Manager

AGGARWAL SAMIR & CO

New Delhi

CA Inter

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
06 May 2026
Account Assistant / Article Clerk

V.K. Ranjan & Co(Chartered Accountants)

New Delhi

B.Com

View Details