Limit for hand loan

Mr.Bhimsen

You can collect hand loan from your friends and relatives, there is no limit.  But you should be very careful that the loan giver must hold tax paid savings or declared income with him.  At the time of verification from Income Tax Department, he should confirm the amount with evidence.  I think it is very high for you, that is 10 lacs per month EMI.  How many EMI? As a pensioner how will you repay it.  What is the source of income to repay the loan with interest.  

Mr. P James Victor, Thank you for your advice. The source of income for repayment of the loan thus raised will be arranged by disposing of one open site that I own in Bangalore, which may fetch around 50-60 Lacs. The site is under sale which may take place within a period of 4-5 months. In that intervening period, I may require hand loan from my friends for payment of EMI. Please advice whether I can go in for the hand loan.

Yes, you can go for loan. When you sell a property, the capital gain should be reinvested into another one. So it will serve your purpose.

Your acceptance and repayment of loan should be by cheque only.