Daijiworld Media Network - Bengaluru (RJP)

Bengaluru, Jun 22: It has been learnt that nationalized banks will not lend loans against the documents which are laminated. In short, do not laminate your documents as they will lose their legal value.

At present only the nationalised banks have decided not to lend loan against documents which are laminated. But other banks may follow suit. Though the nationalised banks have not come out with any specific communication on this regard, it is observed that they have stopped receiving applications with the documents which are laminated. Fraud related to properties has been cited as the main reason for the decision.

In many instances the laminated documents pledged with the banks were found to be colour photocopies of the original. In some instances multiple loans were availed on a single original document by producing many laminated colour photocopy documents. The bankers do not have any means to verify these documents. Hence to be on the safer side, they have decided not to swim in risky waters.

It should be remembered that some years back, a person, who had laminated a cheque which he took as security, lost the case in a cheque bounce case. The reason the court gave was- it did not consider the laminated cheque as an original cheque.

This is the time people start giving up the habit of laminating the documents to safeguard them against damage. It is not only a question of borrowing loan, but also the question of legal value to the document. Time will come when the laminated document will not be accepted at all for any purpose.