Can registered sole proprietorship firm give loan to firm & take loan from firm
3 years ago
Question1. Can a registered sole proprietorship firm give loan to individual & firms and take loan from individual & firms ?
Question2. And if sole proprietorshipfirm , firm A gave loan to firm B & took collateral property from firm B for a period of 2 years , then, if firm A needed more money within these 2 years, then, can firm A give that collateral property, which was received from firm B, to firm C as collateral & take loan from firm C for a time period of less than those 2 years which were provided to firm B, mean, before the completion of those 2 years.
Is it possible ?
A.It is not possible. Lodge complaint with concerned authorities and police
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A.I have gone through your query in detail.
A-1. A sole proprietorship firm means a “firm” formed by a single individual and so you giving or taking of loans from an individual or to a individual is solely based on your own risk factors. You can make agreements for the same on an individual level, a legal advice from a lawyer making such loan Agreement is a must at each level of agreement is a must.
A-2.The firm A can give loan to firm B on the collateral property, but A cannot give the property / property Papers of B to the company C, but A always has the right to keep such collateral property papers in the bank with intimation to B and get more loan if required on lesser interest rate OR have a OD facility from the bank ONLY. It is a good concept as the requirements of A & B are also fulfilled.
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ADV. ANISH PALKAR (High Court)
A-1. A sole proprietorship firm means a “firm” formed by a single individual and so you giving or taking of loans from an individual or to a individual is solely based on your own risk factors. You can make agreements for the same on an individual level, a legal advice from a lawyer making such loan Agreement is a must at each level of agreement is a must.
A-2.The firm A can give loan to firm B on the collateral property, but A cannot give the property / property Papers of B to the company C, but A always has the right to keep such collateral property papers in the bank with intimation to B and get more loan if required on lesser interest rate OR have a OD facility from the bank ONLY. It is a good concept as the requirements of A & B are also fulfilled.
If you realize my professional skills, the time & efforts put in by me needs to be truly appreciated, and then Please “CLICK MY LIKES/ THUMBS UP/GIFT” button shown below this reply format & also CLICK/ WRITE a “REVIEW” in 5 star as I have answered your query in detail. Hope this information is useful
ADV. ANISH PALKAR (High Court)
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