Personal Commercial Loan

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Similar to Commercial Loans provided to companies based on the company financial documents provided to the Bank, a Personal Commercial Loan is provided to a Company based on an individual credit and account history.

This does not mean that the Bank does not review the company documents and the company financials since its inception but it means that the Loan is granted on an individual name and is not provided on the company name. The above mentioned information may not mean anything to some people who does not know Banking or the laws governing Bank accounts and Loans. For a Bank a company is a separate legal entity and its owner is another individual legal entity.

If a Loan is provided to a company, the owner is indirectly responsible for repayment as he has signed the documents confirming payment of EMI's on time, however if the documents are signed by Power of Attorneys who are paid employees of the company who are fired after sometime, the attorneys or the legal representatives will not be held responsible for payment but the company will be liable to repay the Loan outstanding.

But incase the loan is provided on an individual name and on his individual capacity but based on the company documents, creditors and customers, the individual under whose name the Loan is provided is solely responsible for repayment and the company is not directly liable for repayment.

The amount of loan provided for such kinds of Loans is less than commercial loans and the charges and interest have to be clarified with the Bank before completing the documentary requirements as the Bank will only agree to what is written on the Loan application and it is highly recommended that the documents are filled in before they are signed.