Types of Borrowers
Types of Borrowers
borrower entities
DIFFERENT TYPES OF BORROWERS
• Individuals ( including Joint Individuals )
• Sole Proprietor Firms
• Partnership Firms – Registered / Un-registered
• LLPs
• Joint Hindu Family / HUF (Hindu Undivided Family)
• Limited Companies ( Public and Private Ltd. One Person Company
)
• Co-operative Societies
• Clubs / Associations / Schools
• Trusts ( Registered / Un-registered )
INDIVIDUALS AS BORROWERS
• Proper Identification proof and KYC norms to be verified before
execution. Any mis-match in documents regarding name, father’s /
husband’s name , address must be properly examined and satisfactorily
verified
• Confirm whether competent to contract – should not be minor (below
18 years of age), not of unsound mind, not having been declared
undischarged insolvent or a lunatic.
• In case of Joint execution by individuals, appropriate operational and
disposal instructions of securities, if any , must be clearly obtained
• Where the borrower is illiterate, Thumb impressions (Right in case of
Male and Left for female ) must be obtained, along with a letter duly
attested by a literate person( known to the borrower) / independent
witness, that the contents of the document/s being executed have been
explained and fully understood by the illiterate borrower/s in his / her
presence. Similar procedure to be adopted in case of blind person/s
also.
INDIVIDUALS AS BORROWERS