Interest on loan
ANKUR GUPTA
(Querist) 01 February 2014
This query is : Resolved
Hi Seniors,
Greetings!!
I want to ask a query, Can anyone please tell me that can an individual is not valid in law to collect/take interest on Amount advanced to another individual person?
There is a dispute in me and my advocate that an individual is not entitled to take interest on loan advanced.
Please give your suggestions and opinions.
ajay sethi
(Expert) 01 February 2014
if individual has a money lender license he can advance maoney on interest. for an isolated transaction you may not need license . but if you are giving loans to many persons you would need license
Rajendra K Goyal
(Expert) 01 February 2014
If the money is advanced not as a part of lending business it license is not required.
ANKUR GUPTA
(Querist) 04 February 2014
Thanks, My client had lent money to three person jointly, they have one agreement signed by above three parties.
In that all three parties are accepted that they have taken loan on interest @2.25% by my client.
Three parties includes mother and two sons.
my client is doing some business in the premises of these three parties.
In the exchange of interest on Advance, my client never paid rent.
Now, there is a dispute in between my client and that three parties.
Now please tell, can i ask for interest in court? Valid in law??
I had never give money on interest to any person (except these three jointly).
