(To be issued on the Letterhead of Chartered Accountant)
Ref. No.: ____________
Date: _______________
To,
The Branch Manager
______________________________ Bank / Financial Institution
Branch: _______________________
Subject: Certificate for Utilization of Term Loan
We have examined the books of account, bank statements, invoices, supporting documents and other relevant records of M/s ____________________________ (“the Borrower”), having its registered office at ____________________________________________, in connection with the term loan sanctioned by your bank / financial institution.
The details of the term loan are as under:
| Particulars | Details |
| Name of Borrower | __________________ |
| Nature of Facility | Term Loan |
| Sanction Letter No. & Date | __________________ |
| Amount Sanctioned | Rs. __________________ |
| Amount Disbursed till Date | Rs. __________________ |
| Purpose of Loan | __________________ |
Management’s Responsibility
The utilization of loan funds in accordance with the sanction terms and maintenance of proper books and supporting records are the responsibility of the management of the borrower.
Our Responsibility
Our responsibility is to verify the utilization of the term loan funds based on the books of account, records and documents produced before us and issue this certificate.
Based on our examination of the books of account, supporting documents and other relevant records and according to the information and explanations provided to us, we certify that:
- The amount of term loan disbursed by the bank / financial institution up to ____ / ____ / ______ is Rs. __________________.
- Out of the above, an amount of Rs. __________________ has been utilized for the purpose for which the term loan was sanctioned, as per the details below:
| Particulars of Utilization | Amount (Rs.) |
| Purchase of Plant & Machinery | __________ |
| Building / Civil Construction | __________ |
| Purchase of Equipment / Vehicles | __________ |
| Project Expenses | __________ |
| Other Approved Purposes | __________ |
| Total Utilized | __________ |
- Based on our verification and according to the records produced before us, no material diversion of funds for purposes other than those specified in the sanction terms has been noticed.
- Any unutilized balance of the loan amount as on the date of this certificate is Rs. __________________.
- This certificate is based on the books of account, records, invoices and other supporting documents produced before us and explanations provided by the management.
This certificate is issued at the specific request of the borrower for submission to __________________ Bank / Financial Institution in connection with monitoring of utilization of term loan and should not be used for any other purpose without our prior written consent.
This certificate has been issued in accordance with the Guidance Note on Reports or Certificates for Special Purposes issued by the Institute of Chartered Accountants of India.
For __________________ & Co.
Chartered Accountants
Firm Registration No.: ______________
Signature: _______________________
Name of Chartered Accountant: _______________________
Membership No.: _______________________
UDIN: _______________________
Place: _______________________
Date: _______________________
