one of my relative has taken a loan on agriculture land namely SAO Loan. Scene here is like : For example loan amount is 1,00,000 then they will hold 10 percent in the name of share capital ..i.e they will issue 90k only but charge interest on one lakh and they wont give us any interest on held 10percent. How ever at the time of repayment we need to pay only 90k plus interest if any.
Here questions to experts is " Is it fair to charge interest on one lakh despite of issuing 90lakhs ?
what can do legally please advice almost there are 1000 of ppl who are effecting in such a way .
Thanks in advance, Your prompt response will save many loaner of society.