Creditworthiness Certificate Format for Unsecured Loan 2026 — CA Certificate of Lender
CERTIFICATE ON PARTICULARS OF THE LENDER OF AN UNSECURED LOAN
To,
{{lender_name}}
{{lender_address}}
1. This certificate is issued in accordance with the terms of our engagement letter dated ____________ with {{lender_name}} ("the lender"), who has advanced an unsecured loan of ₹{{loan_amount}} to {{borrower_name}} (PAN: {{borrower_pan}}) ("the borrower") on {{loan_date}}. The lender has asked us to certify the particulars set out in the Statement below from the lender's records, for the purpose of {{certificate_purpose}}.
Lender's Responsibility
2. The preparation of the Statement, the maintenance of the records on which it is based, the filing of the returns of income referred to in it and the explanations given on the sources of the funds lent are the responsibility of the lender. The lender has confirmed in writing that the loan was advanced out of the lender's own funds as described in Part D of the Statement, and that the records produced to us are complete.
Our Responsibility
3. Our responsibility is to certify whether the particulars in the Statement are in agreement with the records of the lender produced before us. We conducted our examination in accordance with the Guidance Note on Reports or Certificates for Special Purposes (Revised 2016) issued by the Institute of Chartered Accountants of India, which requires that we comply with the ethical requirements of the Code of Ethics issued by the Institute, and we have complied with the applicable quality control requirements for firms that perform such engagements.
4. We have examined the following records of the lender: (a) PAN and ____________ [Aadhaar / certificate of incorporation / other identity and address document]; (b) acknowledgements and computations of the returns of income filed for the years listed in Part B; (c) ____________ [the audited balance sheet / statement of affairs prepared by the lender] as at ____________; (d) the statement of the bank account named in Part C for the period ____________ to ____________; (e) the documents supporting the credits listed in Part D; and (f) the loan confirmation dated ____________ signed by the lender and the borrower. We have not examined the books or records of the borrower.
Statement of Particulars
Part A — Identity of the lender
| Particulars | Details |
|---|
| Name | {{lender_name}} |
| Status | Individual |
| PAN | {{lender_pan}} |
| Address | {{lender_address}} |
| Occupation / nature of business | |
| Relationship with the borrower or its directors / partners, as stated by the lender | |
| Income-tax jurisdiction (Ward / Circle), if known | |
Part B — Income returned by the lender
| Tax year / assessment year | Date of filing and acknowledgement no. | Gross total income (₹) | Total income returned (₹) | Tax paid (₹) |
|---|
| | | | |
| | | | |
| | | | |
Part C — The loan
| Particulars | Details |
|---|
| Amount of loan | ₹{{loan_amount}} |
| Date advanced | {{loan_date}} |
| Lender's bank account debited | {{lender_bank_account}} |
| Mode and reference of payment | {{payment_reference}} |
| Balance in the above account immediately before the payment (₹) | |
| Balance in the above account immediately after the payment (₹) | |
| Rate of interest and repayment terms, per the loan confirmation | |
| Capital / net worth of the lender as per the balance sheet or statement of affairs referred to in paragraph 4(c) (₹) | |
| Total loans and advances given by the lender as per that balance sheet or statement (₹) | |
Part D — Credits in the lender's bank account out of which the loan was advanced
| Date of credit | Amount (₹) | Nature and source, as per records | Document examined |
|---|
| | Opening balance carried forward | Bank statement |
| | | |
| | | |
| | | |
[List every material credit in the period before the payment that made up the balance used — salary or business receipts, maturity or sale of investments, sale of property, loans received, gifts. Where a credit is itself a loan or a transfer from another person, say so; do not describe it as "own funds". Cash deposits are to be shown as cash deposits with the lender's explanation, if any, in the lender's words.]
Certificate
5. Based on our examination of the records referred to in paragraph 4 and the information and explanations given to us by the lender, we certify that:
- (a) the particulars of identity of the lender in Part A agree with the documents produced before us;
- (b) the particulars of income returned in Part B agree with the acknowledgements and computations of the returns of income produced before us;
- (c) the sum of ₹{{loan_amount}} was paid from the bank account of the lender named in Part C on {{loan_date}} by the mode stated there, and the balances shown in Part C are as per the bank statement produced before us;
- (d) the capital / net worth and the loans and advances shown in Part C are as per the balance sheet / statement of affairs produced before us; and
- (e) the credits listed in Part D appear in the bank statement on the dates and for the amounts shown, and their nature and source are stated as they appear from the documents listed against each.
6. This certificate is confined to the agreement of the above particulars with the records examined. We have not audited the financial statements or statement of affairs of the lender, and we express no opinion on them. We do not express any opinion or conclusion on whether the loan will be accepted as explained under section 68 of the Income-tax Act, 1961 or section 102 of the Income-tax Act, 2025, which is a matter for determination by the income-tax authorities, nor on the lender's ability to advance or the borrower's ability to repay any sum in future.
Restriction on Use
7. This certificate is addressed to the lender and is provided solely for the purpose stated in paragraph 1. The lender may furnish a copy to the borrower for that purpose. It should not be used by any other person or for any other purpose. We do not accept or assume any liability or duty of care for any other purpose or to any other person to whom this certificate is shown or into whose hands it may come without our prior consent in writing.
Place: __________________
Date: 1 October 2026
For {{firm_name}}
Chartered Accountants
Firm Registration No.:
_______________________________
{{engagement_partner}}
Partner
Membership No.: {{icai_membership_no}}
UDIN: ____________________
Usage Notes
- Who should sign: the lender's own CA, who has access to the lender's returns, bank statements and balance sheet. The borrower's auditor cannot certify another person's capacity from the borrower's books and should not be asked to.
- Do not certify a conclusion such as "the lender is creditworthy" or "the transaction is genuine". State the facts found in the records; the conclusion belongs to the reader.
- Read the bank statement for at least the three months before the loan. A cash deposit or a round-sum transfer credited a day or two before the loan is exactly what an Assessing Officer looks for; it must appear in Part D as it is.
- If a credit in Part D is itself a loan or gift received by the lender, the documents for that transaction belong on the file too. From assessment year 2023-24 a loan is treated as explained in the borrower's hands only if the source is also explained in the hands of the creditor.
- Obtain a signed representation from the lender and a copy of the loan confirmation. If the records do not support the lender's explanation, decline the engagement rather than qualify a certificate that will be relied on in assessment proceedings.
