Nagendra Rao (AM) 10 March 2015

Can a individual give money on interest to govt. employees

Dear Sir, One of my friend who is a central govt. employee and need for money around 1Lac and he ready to pay interest @ 24% per annum. I am a private company employee and I ready to give money. My friend conformed that he will give cheques with amount and promissory note. But as discussed with one of my colleague they suggested to make agreement on 100 stamp paper and notarise it is it necessary? Can I take PDC cheques and Promissary note simple one as security or can u suggest safest method please. While giving 1lac amount can I give through Cheque or by Cash which one is safest. The transaction will be take place in Telangana state

Reply Follow

2 Replies

Kappil Cchandna (Expert Bail & Criminal Defence Lawyer at Delhi Supreme Court of India) 10 March 2015

Sir,

Give the money by way of account transfer and don't give cash and make sure you take in his handwriting that its the money you are lending him (because these days people come with an opposite claim in future that their money is returned and it was not a loan)

Second is make an agreement and make a video of the same, because later on he can take the defense that his signatures were forged.

Third is about interest I am not sure because the persons who are registered in Money Lenders Act can recover their money legally.

Post dated cheques are fine,,,, don't take promissory note.

Regards

Kapil Chandna Adv

9899011450

Sudhir Kumar, Advocate (Advocate) 15 November 2015

Money given to friends and relatives is always a charity in the garb of loan which is given in expectation of refund but always taken with intention of non-refund.