Lending money to a friend in security of his plot sale deed which deed would be better

Glad son (Querist) 13 January 2016 This query is : Resolved
Hi

Am lending Rs 3.5 lks money to my friend for security purpose am taking his original Sale deed. Actually am confused on what way shall i give him a money (I dont have lenders license)(In EC it's reflecting as AGREEMENT instead of SALE DEED)... Actually am Planning to do "MORTGAGE DEPOSIT OF TITLE DEED" so that it reflects on "EC". but when i checked regarding this some of them said that this DEED would be useless if you don't have "LENDERS LICENCE" and advised to go for SALE AGREEMENT....
Does SALE AGREEMENT reflects on "EC". Out of both which would be better......
SALE AGREEMENT as any value if my friend default to pay money.(Actually am collecting interest for that money but i don't have lenders license so am not showing in DEEDS.)...what is the highest interest rate that we can collect for borrower in Karnataka (Bangalore).... Please advise Awaiting for your replies..

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Sudhir Kumar, Advocate (Expert) 13 January 2016
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http://www.lawyersclubindia.com/experts/lending-money-for-a-friend-for-5-per-month-578816.asp#.VpWsZU-njww