Raju (Director) 04 July 2014

Person to person loan

Dear Friends ,

One of my Business Contacts wants a loan of INR 25 Lakhs to Finance his Business (Not a friend)

I have the required funds with me but how can i give him a Loan in the most secured way .

1) Will an agreement on Stamp Paper be good enough ?

2) As this is a Person to Person Loan can i ask for a Collateral like a House / Land / Immovable Property etc

Any input from knowledgeable people around is welcome

Thanks

Reply Follow

5 Replies

girish nanji shejpal (self practising) 06 July 2014

I THINK U MAKE AGREEMENT AS 50% PARTNER IN THERE BUSINESS, AS NON WORKING PARTNER

Raju (Director) 07 July 2014

Dear Girish ,

Thanks a lot for your reply .

The person is unable to put me as a partner as the value of the Directors share is more than the Loan i am giving him ( There are 2 other directors )

Q ) Is a Private person allowed to take property as collateral ?

girish nanji shejpal (self practising) 07 July 2014

As a sell Deed , give them time for repayment for loan & after that period you purchase there property.

S K KARNjhc (Legal Adviser) 12 July 2014

I would say frankly to consult a financial consultant in this matter as this is not legal matter.or make a mortgage deed for land may be done in this case(if be allowed).

Rangee (Lawyer) 17 July 2014

Hi,

Ask for collateral like house or property without any encumberances and legal good title. The property should be valuable and matching to amount of loan plus interest for period of time. may be the property should be worth 50.00 lakh for the loan amount. Consult a lawyer execute a mortage deed.

yours

R S K Singh