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Loan without interest is money lending

Querist : Anonymous (Querist) 22 May 2018 This query is : Resolved 
I have given loan to few people without interest through cheque/ bank .............there is loan agreement signed by him and his gurantor has also signed gurantee paper...............they have also given me cheque and promissory note......................would it be considered money lending is there anything illegal ( as I have given loan without interest)
KISHAN DUTT KALASKAR (Expert) 22 May 2018
Dear Sir,

If you go on lending such interest free loans then it will be deemed as money lending business even though you are not receiving any interest. If you would like to continue such business you get registered as Society/NGO.
Kumar Doab (Expert) 22 May 2018
Pls post with your ID and not as Aq and you can get many replies.
Your ID does not mean your email id or phone number and don’t post these also.

Ms.Usha Kapoor (Expert) 23 May 2018
Agree with Kishan Dutt. Altruism is good but it doesn't work in money lending business as you are lending money without interest.
Asgher Mahdi (Expert) 23 May 2018
Giving loan or lending money to support any lawful cause is not illegal.In your case you did all right things to safeguard your interest for recovery. You may file money recovery suits, no doubt. The question you asked whether money lending illegal to answer it not unless you obtain proper money lending licence . In your given case it cannot be proved as money lending on interest. May be supported by cause of assistance on humanity ground.
P. Venu (Expert) 23 May 2018
Are the cheques given to you signed, but undated and blank?
Sudhir Kumar, Advocate (Expert) 26 May 2018
repeated

http://www.lawyersclubindia.com/experts/Loan-without-interest-is-money-lending-681981.asp


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