Is promissory note without money lending licence is legal

TGK REDDI 03 February 2019

It's legal.

If the borrower is a farmer, Court allows 1% a month or, in other words, 12% per annum.

Harsh (None) 03 February 2019

Okay. Than what for Money lending Licence is required to give loans. Isn't it better to give loans against ProNote rather than going for the intricacies of the licence . Moreover, lending against licence will have interest Cap which may not be in case of promissory Note. isn't it so. ?

Harsh (None) 03 February 2019

Okay. Than what for Money lending Licence is required to give loans. Isn't it better to give loans against ProNote rather than going for the intricacies of the licence . Moreover, lending against licence will have interest Cap which may not be in case of promissory Note. isn't it so. ?

TGK REDDI 03 February 2019

A licence is normally needed for him who makes lending a business.

G.L.N. Prasad (Retired employee.) 03 February 2019

Such type of lending between relatives or friends is not barred by any law, and to cicumvent the law, though promissory notes record lower rates, almost all the money lenders deduct such interest from a principal and obtain the document. The law is for the safety of the money lender and to save common men in paying exorbitant interest and exploitation of poor.

Harsh (None) 03 February 2019

Generally in case of Default, The Lender does not produce or even Talk about the Promisory Note as it is mentioned at higher rates there and will be a Civil Suit Perhaps.

Insted they only file case against the Cheque Bounce U/s 138. In such Case if the there are entries of Interest Paid Throgh Bank will it be illegal or Legal. ?

I need detail Guidance in this respect to understand the entire things. Anyone who may have thorough expertise may please leave contact details here, I am willing to pay the Mentoring/consultancy charges the same also.

Thanks

P. Venu (Advocate) 03 February 2019

Prima facie, you are scouting for loopholes in Law. You are, I am, afraid in the wrong forum.

Harsh (None) 03 February 2019

Dear sir., I am not scouting for . I am just trying to learn to get someone out from the clutches of few moneylenders who have sucked him a lot. If I will have some proper and sound information , I can negotiate and communicate with them better. It you are interested in this respect as I said above, please share your contact details. Thank you.