Legal Question in Banking Law in India

Re: Security For Loan

The question is wrongly worded. You should ask the man to whom you intend giving the loan as to what security he can give for the loan. There is no point in getting cheques when there is no guarantee of the drawer garnering sufficient funds in his account to honour the same when presented. Since you say that the intended borrower does not own any property, he can give no security. If you lend, if at all you should in any case, you have only to trust the borrower's honesty, if u are reasonably sure of the same and his repaying capacity. You can think of asking his near relative or friend having some property worth the loan to give guarantee for the loan.

Re: Security For Loan

yes you may ask for some gurantor to repay the loan if lender fails to pay it

Re: Security For Loan

You may obtain a pronote, receipt and a loan agreement for repayment.

Re: Security For Loan

Well!!! if the borrower has no security to repay your loan. If believe you should not give loan to such person because more often then not your money will get stuck.

Re: Security For Loan

Plz hire an advocate to make proofs and for drafting and guiding you local laws. Else as per general law, you can recieve blank cheques, his property in your name, Bank security and there on many other options.

Regards

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