Loan
thirumalaisamy
(Querist) 28 October 2014
This query is : Resolved
what is the procedure for loan giving to friends
Sudhir Kumar, Advocate
(Expert) 28 October 2014
you can given any money to the friends as charity (in the garb of loan) in any manner, by any documents because you are not going to recover the same when you need.
kindly browse this forum for the plight of those who loaned money friends or relatives.
thirumalaisamy
(Querist) 28 October 2014
thanking you sir i am giving loan rs 25000 to friend after received promissory note 2% interest rate from friend.in future any risk case to friend.
Guest
(Expert) 28 October 2014
Academic Query Please.
Sudhir Kumar, Advocate
(Expert) 28 October 2014
"thanking you sir i am giving loan rs 25000 to friend after received promissory note 2% interest rate from friend.in future any risk case to friend. "
It will be your risk when you receive nothing back. What risk can be the person whom you today call as friend.
You may better browse the threads of forum to see sufferers who loan to friends and lost money and friendship
you can instantly visit the thread
http://www.lawyersclubindia.com/forum/details.asp?mod_id=111453&offset=0#.VE-rcWeO5G1
Devajyoti Barman
(Expert) 29 October 2014
Do not mention anything about interest as if you do not have license then you can fetch interest for loan.
You have to execute a Pro-note wherein the amount to be given and returned back must be same . However to fetch interest you can mention the whole amount along with interest also as if it is the principal amount only.
Sudhir Kumar, Advocate
(Expert) 29 October 2014
Be clear such loans are taken by those who are either not credit worthy of getting loan from bank or their utility is not lawful (viable). They generally lack paying capacity
Such loans are given by totally unscrupulous persons. You are certainly not giving loan at 2% p.m. (less thank saving bank interest) you in all probability are giving loan on 2% p.m. compound. They are generally well versed in extra-legal and illegal ways of recovery.
So better not use term "friend" for you and the loanee.
It appears that this forum is meant for bonafide persons and not for borrowers and lenders like you.
Guest
(Expert) 29 October 2014
In the case of loan to and from a friend, instead of any procedure, trustworthiness of both the friends is a must.
ajay sethi
(Expert) 29 October 2014
do you have money lender licence? you cant charge 2%^per month interest unless you have licence .
Sudhir Kumar, Advocate
(Expert) 29 October 2014
if it is monthly compound rate of interest then money will double in three years.
Those who have read Prem Chand story सवा सेर गेहूँ [http://www.hindisamay.com/contentDetail.aspx?id=464&pageno=15]
will not support you.
Such like practices were the reasons whereby in early 20th century anti-money lender laws were passed at state levels in in seventies at union level.
P. Venu
(Expert) 29 October 2014
Since the borrower has given or is willing to give the promissory note, it immaterial that he is your friend. You may ensure that promissory note drawn up in conformance with the law, on the lines suggested by the learned experts.
Dr J C Vashista
(Expert) 30 October 2014
You are at liberty to give loan to friend, with or without a document, subsequently terms with your friend will turn around and change into un-friendly.
Whatsoever, it is an unfit and academic query.
V R SHROFF
(Expert) 31 October 2014
u r giving loan rs 25000 to friend after received promissory note 2% interest rate from friend.in future any risk case to friend.
MONEY PAID ALWAYS CARRY RISK...
Sudhir Kumar, Advocate
(Expert) 31 October 2014
repeated
http://www.lawyersclubindia.com/experts/Loan-given-to-relatives-504826.asp
T. Kalaiselvan, Advocate
(Expert) 02 November 2014
Experts have advised well, better think well of all the bitter incidences that may occur in future when you demand back the money lent and steps to handle such situation in advance and then proceed with idea of lending money to your friend or anyone.
