Banking · Loan Documentation and Limitation
What is the standard limitation period for a Demand Promissory Note (DPN) taken as primary security in a loan account?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Five years from the date of the loan sanction letter
- 2Three years from the date of the last credit entry in the account
- 3Twelve years from the date of the first default by the borrower
- 4Three years from the date of execution of the document✓
Correct answer
Three years from the date of execution of the document
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