In India, the requirement of a blank cheque for a personal loan depends on the lender’s policy. If you want to know is blank cheque required for personal loan, let me tell you that many traditional lenders like banks and NBFCs may ask for post-dated or blank cheques as security. However, digital lenders often do not.
Is it Required to Submit Blank Signed Cheque for Personal Loan?
Banks or NBFCs may request a blank cheque as a form of repayment assurance. It is often used as collateral to enforce repayment in case of default. Some lenders prefer post-dated cheques for each installment instead of a blank one.
Online loan providers usually do not require a blank cheque due to automated repayment methods like ECS (Electronic Clearing Service) or NACH (National Automated Clearing House). Digital lenders rely on your bank account’s standing instructions for repayment.
Giving a blank cheque has legal risks under Section 138 of the Negotiable Instruments Act, as it can be misused if terms are unclear. `Borrowers should ask for a written acknowledgment or terms regarding the cheque’s use.
Ensure it is given only to reputed lenders. Write “Account Payee Only” or limit its use to safeguard against unauthorised withdrawals. Retain a record of the cheque number and seek legal advice if unsure.
I hope you found this informative.
Get Personal Loan Up to Rs. 10 Lakhs Instantly in Your Account Via NB Instacash
Read more
How to Write a Cheque Stop Payment Letter to Bank: Sample Format
Your Feedback Matters! How was this Answer?
Shifting, House?
✔
Lowest Price Quote✔
Safe Relocation✔
Professional Labour✔
Timely Pickup & Delivery
Intercity Shifting-Upto 25% Off
Check Prices
Intracity Shifting-Upto 25% Off
Check Prices
City Tempo-Upto 50% Off
Book Now
Authors Of The Question
Is Blank Cheque Required For Personal Loan?
ravi
143 Views
1 Answers
47 days
2024-12-13T20:09:55+00:00 2024-12-13T20:09:57+00:00Comment
Share