Jul 20, 2017 Other By jayesh




Due diligence of credit proposal is first step of appraisal of credit proposal. This  process is being done by bank officials since long, but now banks are engaging professional agency  to carry out due diligence to improve the quality of their credit proposals and no fraudulent person can avail the credit by submitting incorrect information or fraudulent/fake documents.

Who conduct the due diligence-

Due diligence is normally conducted by the bankers. However many banks are now empanelling reputed agencies  for the due diligence work so that correct credentials of the borrower can be ascertained.

Scope of Due diligence.

Due diligence or credentials of the applicant covers  following aspects.


a] Verification of documents submitted by the applicants for their genuineness. Like PAN card, Aadhar card, ITR returns, computation of income and cross checking of information from Bank statements, Financial statements etc.

b] Verification of Residence /place of business- This is conducted by by physically verifying the place of residence and business.  The proof of ownership like title deed or lease deed / tax receipts etc are examined to confirm the ownership. Likewise in case of business other documents like registration under shop and establishment act, Trade licence, GST registration, industry registration with MSME in case of manufacturing sector , infrastructure, business assets available at the premises  are verified and cross matching of information furnished in various documents  is done in order to confirm the residence and place of business.

C]Employment verification – This is done by physically visiting to the office of the applicant and ascertaining his designation, profile, office set up, no. of employee working in the office, his monthly salary slip, employee number card and confirm his employment and place/location of his office. It also cover the category of employer like private sector, Govt /semi Govt/ or some private individual.

2]Security verification-

This involve physically verifying the security being offered by the applicant. Scope of work covers examining genuineness of property documents, ascertaining its reasonable value as per market information, and ensuring its correct location, land mark, and complete address so that identification of property become easy. It is important to match the information from the search and valuation reports also. It also covers verification of charges on the security created with ROC.

3] Financial statements verification.

This covers verification of genuineness of financial statements, ascertaining the level of business and cross checking the information with place of business, stock holding, size of unit, no. of employee in the unit, Banks transactions and taxes paid etc. All the information are cross checked to ensure genuineness of financial papers.

In view of above Just4uloan .com request its customers to furnish the correct and updated information so that there is no mismatch in the various papers and documents. If any information required to be updated or amended , the same should be done before approaching for credit facility. Just4uloan.com always assist its customers  in the entire process of due diligence.


Social Links