Demand notice drafted, please correct.

1) Is the rate of 20 % per annum, per month or for 3 months ?
Per month or for 3 months could open you to charges of Usury. See :

https://punjabrevenue.nic.in/usurios_loan_act.htm

2) Rest seems to be fine. You could add in " Without Prejudice " on top right hand side and instead of expenses put " expenses and damages "

 

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You have some proof of borrowing money I.e. Cheque, any writing to that effect. If you don't have anything or proof and borrowed in friendly way, be careful before sending any letter. Better way get some written acknowledgement of this transaction.

Dear Hardeep,

Thank you very much for the valuable suggestion.

The rate of interest is 20% per annum. How to specify the same in the Demand Notice? Can I say

"You have agreed to repay the loan amount with interest at the rate of 20% calculated per annum within 3 months duration"

Dear Jai Karan Nagwan,

Thank you very much for the suggestion.
Yes, I have the proofs, I transferred the money to the borrower via my HDFC and SBI Net Banking account through NEFT. I printed the bank statements and also got it attested (sign & stamp) by the bank manager which I shall produce in the court of law as proof. Ofcourse I do not have a promissory note or any agreement in writing signed by the borrower indicating that the rate of interest is 20%. But the Borrower's(my uncle) Mother (my grandmother from mother side) who is a mediator in this transaction agreed to sign a letter indicating that her son agreed to pay the interest rate of 20% and promised to repay within 3 months. My grandmother is also willing to come to the court of law as a witness to help me get my money back from her son.

mention the borrower name with his age as on date and father name with full address and in first para mention his name and his occupation 

Dear Hardeep,

 

How does the addition of the phrase " Without Prejudice " help in this Demand Notice? I searched on Google and read a few related articles but couldn't clearly understand. What does the phrase imply?

Meet any advocate to draft notice.

Jai Karan Nagwan,

I am going to self represent my case in the court, not engaging a Lawyer

Mr. Ram, are you a money lender?, on what negotiable instrument you have given loan and charging exorbitant rate of interest. Lending money without money lenders licence is an offence.

Rushil,

I am not a money lender, there is no negotiable instrument. My mother's brother borrowed the money from me saying that he shall repay within 3 months but it's been 1.6 years now, I only have the bank statements that denote the money transfer as proofs, 20% interest per annum isn't any high, the borrower agreed to pay the bank interest verbally which comes to 14% (bank's personal loan rate of interest) I quoted additional 6 % additionally as I will have to meet all these unnecessary court expenses and time lag etc.

Banks interest rate is legal, bank has the license to carry on business of lending. If u have given friendly loan, you can charge only nominal rate of interest. You check money lenders Act. You need to approach your nearest Advocate with all your papers. Your case is not as simple as you think.

Your demand notice appears that you have lent the amount to borrower on a hand loan, hand loans are generally not lent on interest, hence the demand notice will suffer legal technical flaws.  Instead of interest on loan, you may state that since he failed to return the loan amount within the promised stipulated time you suffered heavy loss hence you are obliged to charge an interest @ 20% p.a. this will save you from the legal disabilities. Though you may desire to handle the case yourself and as a party in person in the court too, it would always be better to take the help of a lawyer outside the court so that you do not fail in your attempt or struggle in your efforts.

Kalaiselvan,

The money was transfered to the borrower's bank account from my bank account via a Netbanking / NEFT transfer.

Rushil

I already sent the demand notice yesterday morning, By the way, I quoted 20% in the demand notice, I am there is no written agreement for anything other than the bank NEFT transfer indicating the money transfered from my account to the borrower's account, there is a voice recording of the borrower saying that he shall repay the money and that he is not going to keep it etc.

other than that there is no other proof or agreement, I am glad if the Court passes the judgement so that I could atleast get my Principal amount which is 1.5 Lakh

otherwise also I am glad if I harrass my uncle(borrower) in bringing him to court multiple times who cheated me and who has taken advantage of my innocence and respect towards relationships more than money.