Before telling you how to give blank cheque for loan, let me inform you about this cheque. This cheque is a cheque that has been signed by an authorised cheque signer but lacks any more information, such as the date, payee, or amount. Providing a blank cheque as security for a loan is a common practice in India. However, it requires caution to prevent misuse. Let me share more details.
Can I Give Blank Cheque for Loan?
Unless your bank doesn’t ask for it, you should not give the blank cheque to them. The lender may request a blank cheque to ensure repayment. The cheque acts as collateral, and no amount is filled in initially.Do not leave the cheque entirely blank. At a minimum, write "Account Payee Only" across the top or in the payee section and your signature as per bank records.Attach a signed document or get a receipt from the lender, stating:- The purpose of the blank cheque.
- That it will be used only in case of default or as per the agreed terms.
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How to Give Blank Cheque for Loan?
pragati
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2024-12-13T20:11:07+00:00 2024-12-13T20:11:07+00:00Comment
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