Bank deals with document not with goods. Bank business main thing is credit business either in local business or export import business. All types of credit needs proper documents. It seems that bank business related with product but actually bank deals with documents not with goods.
What is loan document
A loan document is a contract between a borrower and a lender that outlines the terms of a loan. The document includes information on the loan amount, interest rate, repayment schedule, and any other relevant details.
The documents used in international trade are:
(a) Commercial Invoice
(b) Bill of Exchange
(c) Bill of Lading
(d) Insurance policy
(e) Certificate of Origin
(f) Certificate of Inspection
(g) Packing List
Importance of loan documents
Loan documents are important because they outline the terms of the loan and the responsibilities of the borrower and lender. The documents also protect the lender’s interest in the event that the borrower defaults on the loan. The loan agreement is the most important document in a loan transaction. It sets forth the terms of the loan, including the interest rate, repayment schedule, and any collateral that is required.
The loan agreement also contains the borrower’s promise to repay the loan and the lender’s right to take action if the borrower defaults. The promissory note is another important document in a loan transaction. It is a legal document that contains the borrower’s promise to repay the loan. The promissory note also sets forth the interest rate and repayment schedule.
The security agreement is another important document in a loan transaction. It sets forth the collateral that is required for the loan. The security agreement also gives the lender the right to take possession of the collateral if the borrower defaults on the loan.
The loan documents are important because they protect the lender’s interest in the loan. If the borrower defaults on the loan, the lender can take action to recover the loan. The loan documents also give the borrower the information he or she needs to make sure that the loan is repaid according to the terms of the loan agreement.
Investment documents
What are loan documents; Loan documentation means to show all the documents to bank or financial institutions for getting loan. These documents are very necessary for security of loan. If loan is given without documents, it is the chance that bank or financial institution will failure to get same loan from borrower.
Some loan documents is given below:
- Application in Letterhead Pad
- 1(one) copy passport size photograph of intending borrower(s) as well as guarantors(s).
- Valid Trade License
- Permission from bank legal advisor
- TIN certificate
- Bank statement for last 6 (six) months (if any)
- Partnership deed (in case of partnership firm)
- Memorandum & Articles of Association with certificate of incorporation (in case of limited company)
- Certified copy of up to date list of directors (Form XII)
- Financial statement for last 3 years
- Project Feasibility Report for new project as well as existing project.
- Quotation/ Pro-forma invoice of Machinery
- Machinery list with layout plan for installation.
- Original title deed
- Bia deed , CS, SA, RS & Hal Parcha, Mutation with DCR Upto date rent receipt
- Site Map/Municipal tax receipt
- Non-encumbrance certificate
- Approved plan for construction of building from the competent authority & estimate of cost of construction( in case of land owned by the project)
- Survey Report of the fixed assets of the project or other collateral security.
- Lease agreement (in case of rented premises)
- Copy of membership of appropriate association.
- CIB report of the borrower
- Registered Mortgage deed.
Credit lenders are required to evaluate the purpose of the loan in order to seek its possibility whether the credit requested is enough to finance the project to completion. The borrower is required to disclose how the loan will be used and provide a quote of the amount required to finance the project. In mentioned above documents no clients can escape from financial institution without paying bank loan. That is why we can say bank deals with document not with goods.
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