Charge creation

It generally does't happen if the borrower and lender are prudent in their dealings. It may happen sometimes due to laxity of borrower in creating and registering charges [if registrable under Sec. 125(4)].

Thus its completely legal and valid if loan is taken earlier and charge gets created later on.thanks for the reply

Yes, but as soon as a registrable charge is created it should be registered with the RoC within the prescribed time.