1.

Customer approaches to the bank to get loan facility against his/her security and place an
application mentioning details of his security, subsequently bank official verify the provided
details.
2. Here we can see a sample copy of lien instrument, where customer duly discharged the
instrument and bank official verify the signature and marked lien on the instrument.
3. Delegation authority: Branch/Head office. Branch can grant loan upto 80% of the instrument
value other than this HO approval required.
4. Sample copy of branch confirmation letter regarding lien if loan amount exceeds 80% of the
instrument value/ branch delegation.
5. Sample copy of prescribed charged document (Letter of Lien). Here customer furnishes all
information regarding deposit accounts/FDR/DPS etc. and duly signed by him/her.
Through this charged document, bank get the legal right to set off all liabilities held with the
bank.