A Power of Attorney (PoA) holder can help borrow money for the owner, but only in specific situations. The PoA holder does not borrow money for themselves. They act only on behalf of the owner (also called the principal).
First, the PoA document must clearly give permission to take a loan. The document should mention loan-related powers, such as applying for a home loan, signing loan papers, or dealing with banks. If the PoA does not include this authority, the bank will not allow the loan.
Second, the loan always belongs to the owner, not the PoA holder. The PoA holder only represents the owner and signs documents for them. Banks carefully check the PoA because loan transactions involve large amounts of money and risk.
Banks in India do not give loans directly to a PoA holder. However, they allow loan applications through a PoA when the owner cannot be present. This is common for NRIs who live outside India. Many NRIs use a trusted person in India as their PoA holder to manage property and loan work.
Each bank has its own rules for accepting a PoA. Still, some basic conditions usually apply. The PoA holder should be an Indian resident living in India. The PoA must be made on non-judicial stamp paper of proper value and should be notarised. The document must carry photographs of the PoA holder, attested by the person who gives the PoA. A Notary Public or Judicial Magistrate must attest the signatures. The owner should sign every page of the PoA document.
So, a Power of Attorney holder can help the owner borrow money only when the PoA clearly allows it and the bank approves the document.
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Can a Power of Attorney Borrow Money?
Bhuvaneshwar23
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24 days
2026-01-30T18:14:47+00:00 2026-02-01T09:11:42+00:00Comment
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