Perspective: Till recently, I worked as a 'Web Content Writer', and since the last almost fifteen years my work mode has been freelancing. As such, as advised by the well-wishers, I applied and subsequently held a 'Certificate of Enlistment', as issued by the 'Kolkata Municipal Corporation'. On March-April 2021, the 'Indiabulls Commercial Credit Ltd.' extended a 'Loan against Property' to my apartment. It would be pertinent here to say that I am an allottee member of a Co-operative Housing Society. While extending the 'LAP', the 'ICCL' did so against my 'CE' and secured an 'NOC' from the 'Managing Committee' of the co-op housing society. As I could see in the loan sanction letter, my sole proprietorship company (as recorded in the 'CE') was made the 'Borrower' while I and my wife, the 'Co-Applicant', and 'Guarantor', respectively. The 'ICCL' also made me apply and have a 'UDYAM' certificate prior to sanctioning the loan. Existing scenario: Now, I have decided to convert my profession to a full-fledged author. And, as such, I prefer to change the 'Name of my Company' by filing an application to the Kolkata Municipal Corporation for 'Modification in the details of existing CE' while retaining the rest of the details (Address and the Sole Proprietorship nature of the company) absolutely same. Question: As described above, is it legal to change the name of the company and thereby the name of the borrower in an existing 'LAP'? My purpose: Based on more than half a dozen experiences, I have a lower-than-average impression of 'ICCL's professional expertise and the honest practices, which a borrower might expect from the lender. And, therefore, I would like to know whether the 'ICCL' has any legal ground not to entertain my request. Thanks in advance to everyone!
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Since you have availed the loan against the company's original name, it would be pertinent to obtain NOC from the lender to apply for change of name of the company during the pendency of loan against the name of the company as principal borrower.
Upon obtaining NOC from the lender and by attaching the copy of the NOC along with other formal requirements, you may gt the name of the company changed as per procedures of law.
You are at liberty to change the name by notification in official gazette and publication in 2 local newspapers
2) they cannot reject your application for change in name
Dear Client
Changing the name of your company, and thereby the name of the borrower in an existing 'Loan against Property' (LAP), is a legal process. However, it involves several steps and considerations, and you should follow the legal procedures carefully to ensure that your request is valid and that the lender, in this case, Indiabulls Commercial Credit Ltd. (ICCL), has no legal grounds to deny your request.
Here are the steps you should follow:
Alteration of Certificate of Enlistment (CE): To change the name of your company, you should apply to the Kolkata Municipal Corporation for a modification in the details of your existing CE. This is a common legal procedure, and if all the other details such as the address and sole proprietorship nature of the company remain the same, it should be acceptable.
Inform ICCL: Once you have successfully changed the name of your company with the updated CE, you should inform ICCL immediately. Provide them with the updated CE and any other necessary documentation related to the name change. It's essential to keep your lender informed about such changes.
Loan Agreement Amendment: ICCL should amend the loan agreement to reflect the new name of the borrower (your updated company name). They might also need to update any other relevant documents. The new name of the borrower should match the details on your updated CE.
Co-Applicant and Guarantor: If your wife is a co-applicant and guarantor on the loan, ICCL should also be informed about the name change. Any necessary amendments should be made to the loan agreement reflecting her updated role and the updated company name.
UDYAM Certificate: Update your UDYAM certificate with the new company name and provide the updated certificate to ICCL to ensure they have the correct information on record.
Legal Consultation: It's advisable to consult with a legal expert or attorney who specializes in corporate and financial matters to ensure that all legal requirements are met during this process.
ICCL should not have any legal grounds to deny your request if you follow the legal procedures for changing your company's name and promptly inform them about the changes. However, it's essential to maintain transparency and follow all necessary legal steps to avoid any potential issues.
Additionally, you should carefully review your loan agreement with ICCL to ensure that there are no specific clauses or conditions that may impact your ability to change the borrower's name. If in doubt, seek legal advice to interpret the terms of your loan agreement accurately.
They will need bank noc for the same
A borrower can change their name during the loan tenure only with the prior written consent of the lender. The loan agreement also states that the borrower must notify the lender of any change in their address or contact details within a reasonable time. Therefore, if you want to change the name of your company and thereby the name of the borrower in an existing LAP, you will need to obtain the approval of ICCL and inform them of the new name and any other relevant details.
However, ICCL may or may not agree to your request, depending on their terms and conditions, policies and procedures. They may also charge you a fee or impose other conditions for processing your request. You will need to check with them directly and provide them with the necessary documents and proofs to support your request. Some of the documents that they may require are:
