Giving loan to my friend for business?
salman khan
(Querist) 24 March 2012
This query is : Resolved
i am giving loan of Rs.30,000/- to my friend for starting or running heir dressing shop and my friend will give monthly profit of Rs.1500/- to me for the 11 month and after completion of eleven month my friend will return me whole Rs.30,000/- in that condition what surety i can demand in advance from my friend if they fail to comply the above promise and discontinue the profit.
Chanchal Nag Chowdhury
(Expert) 24 March 2012
Enter into an agreement. Take post-dated cheques for the amounts.
adv. rajeev ( rajoo )
(Expert) 24 March 2012
You cannot give a loan without having money lending license. Without regd., money lender if you lend the amount it amounts un authorised money lending. So give it as hand loan take promissory note without mentioning the interest and you can take the cheque as advised by Chanchalnag
Raj Kumar Makkad
(Expert) 24 March 2012
There is no hurdle to give such small loan to your friend but it shall be better to be safe. You should get executed and written a promissory note from your friend.
One additional undated letter handwritten by your friend should also be obtained confirming the loan amount.
V R SHROFF
(Expert) 24 March 2012
hand loan do not require Money Lending License.
Your deal is a bit illegal, as it amount to 5% interest per month, and cannot come in ambit of friendly hand loan
You pay 30k by a/c payee cheque to him, obtain Promissory note.
Step No. 1]Obtain a Rs. 100/- cheue, deposit in your a/c to verify his bank a/c & sign. Obtain Promissory note of Rs. 30,000, write two cheque No. one of 20k , another of 10k , Pay your cheque in two installment
Pay 20k by a/c payee cross cheque, ask him to withdraw cash, and. give you back.
Step No. 2]Redeposit 10k , Give him A/c Payee Cheque of 10k , Let him withdraw cash & return you.
Step No. 3] Pay a cheque of Rs. 16500/- get Promissory note for Rs. 16500/- and ask him to pay pdc of rS. 1500x11 cheques.
Step No. 4] Get Two cheques one for 20k & one for 10 k of dated after 10 months say 1-1-2013. & 15-1-2013, with letter that there is sufficient fund in my bank a/c and I hereby return your friendly loan of Rs. 20+10 k taken by me for my hair dressing business in March 2012.,
Get his R card, Pan card, copy, photo, xerox, duly signed by him. Now pay him balance cash of 13500/- [ TOTAL 16500 CHQ + 13500 CASH = 30K ]
If you so wish, get his photo as he sign Pro note, in presence of a common friend as witness.
Though your amount is negligible, but my methods will certainly help big fish, who finance to film, builders etc with crores.
They can protect their high risk money, as far as proof is concerned, at low risk. & high gain. They can also get Sale deed agreement of their property signed as sold against the cheque amount, with option to take back on returning amount. [can retain Original regd flat/ shop agr with share certi]
salman khan
(Querist) 24 March 2012
whether PROMISSORY NOTE must be notary with notary public to give it lagal authenticity.
ajay sethi
(Expert) 24 March 2012
salman
on e unsolicted piece of advice for you . if he is your friend and you are giving him a loan of only rs 30,000
if you are expecting him tp pay you rs 1500 a month forget it . it takes time for business to be stablished . your friend will not be in a position to return your money in 1 year .
ultimately it will ruin your friendship too .
if you are giving laon of rs 30,000 forgwet that money will be returned . if you are prepared then go ahead .
legally speaking for recovery of rs 30,000 you will have to spend lot on court fees/ lawyers fees to recover your money .
if you want to have safeguards fr your laon follow mr shroff advice .
V R SHROFF
(Expert) 24 March 2012
Promissory note is only a note, and no notary, no witness. OK
If you want notary, get it on confirmation of loan paid . , a separate doc, in form of Affidavit.
Too small amount for all these precaution.
I Agree with What Shri Ajay Sethi suggested.
Better go for Partnership, have shop on Partnership, get lifetime profit share !!& no burden on anybody!!!
