Enter Company & Loan Details
Fill the details below to generate Board Resolution for Loan from Bank.
CERTIFIED TRUE COPY OF THE BOARD RESOLUTION
Passed at the Meeting of the Board of Directors
Passed at the Meeting of the Board of Directors of ________________ held on ________________ at the Registered Office of the Company situated at ________________.
Subject: Obtaining Loan / Credit Facility from Bank
RESOLVED THAT pursuant to the provisions of Section 179 and other applicable provisions of the Companies Act, 2013, the consent of the Board be and is hereby accorded to obtain and avail financial assistance / credit facility of an amount not exceeding ________________ from ________________ to meet the ________________ of the Company on such terms and conditions as approved by the Board.
RESOLVED FURTHER THAT the Company be authorised to execute all necessary loan agreements, deeds, undertakings and security documents as required by the Bank, including creation of charge or mortgage in favour of the Bank.
RESOLVED FURTHER THAT Mr./Ms. ________________, Director of the Company, holding DIN ________________, be and is hereby authorised to sign, execute and submit all documents and to do all acts, deeds and things necessary to give effect to this resolution.
What is a Board Resolution for Loan from Bank?
Professional Format Guide for Indian Companies
A Board Resolution for obtaining a loan from a bank is a formal corporate document that records the decision of a company's Board of Directors to avail credit or financial assistance from a banking institution. Under the Companies Act, 2013, any borrowing by a company must be sanctioned by its Board through a properly passed resolution.
This resolution is required during the loan application process, opening or modification of bank accounts, execution of loan agreements, and creation of security or mortgage in favour of the lender. It serves as documentary evidence of the Board’s authorisation.
Using a standardised Board Resolution format ensures statutory compliance, professional documentation, and faster processing of loan applications by banks and financial institutions.
Board Resolution for Loan from Bank – Sample Format
[To be printed on Company Letterhead]
Company Name: _______________________________
CIN: _______________________________
Registered Office Address: _______________________________
CERTIFIED TRUE COPY OF THE BOARD RESOLUTION
Passed at the Meeting of the Board of Directors held on __________ (Date) at __________ (Time) at the Registered Office of the Company.
Subject: Obtaining Loan / Credit Facility from Bank
RESOLVED THAT pursuant to the provisions of Section 179 and other applicable provisions of the Companies Act, 2013, the consent of the Board be and is hereby accorded to obtain and avail financial assistance / credit facility of an amount not exceeding Rs. __________ from __________ (Name of Bank), __________ (Branch Name), on such terms and conditions as approved by the Board.
RESOLVED FURTHER THAT the Company be authorised to execute all necessary loan documents, agreements, deeds, undertakings and security documents as required by the Bank, including creation of charge or mortgage in favour of the Bank.
RESOLVED FURTHER THAT Mr./Ms. _________________________, Director of the Company, holding DIN _________________________, be and is hereby authorised to sign, execute and submit all documents and to do all acts, deeds and things necessary to give effect to this resolution.
Certified to be True
For _________________________ (Company Name)
Signature: _________________________
Name: _________________________
Designation: _________________________
DIN: _________________________
Place: _________________________
Date: _________________________
Frequently Asked Questions
Is the signature of all directors mandatory on the Board Resolution for loan from bank?
No. The signatures of all directors are not mandatory. The resolution must be passed with the requisite quorum as per the Companies Act, 2013 and the Articles of Association of the Company. A certified true copy signed by the Chairperson of the meeting or an authorised director is generally accepted by banks.
Does the Board Resolution for loan from bank need to be certified by a professional?
Professional certification by a practising Company Secretary or Chartered Accountant is not legally mandatory. However, many banks prefer or require a professionally certified copy as part of their internal due diligence process. It is advisable to check the specific requirements of the lending bank.
Should the Board Resolution for loan from bank be printed on company letterhead?
Yes. It is standard practice and generally expected that the Board Resolution be printed on the company’s official letterhead. This helps banks verify the company’s identity and ensures authenticity of the document.
Who can be considered an authorised signatory for the Board Resolution?
An authorised signatory is typically a director or key managerial personnel who has been specifically authorised by the Board through the same or a separate resolution. If the authorised signatory is a director, a valid DIN must be mentioned in the resolution.
Which type of resolution is required for obtaining a loan from a bank?
A Board Resolution passed in a duly convened Board Meeting is required under Section 179 of the Companies Act, 2013. If the proposed borrowing exceeds the limits specified under Section 180(1)(c), an additional Special Resolution of shareholders in a General Meeting is also required.
