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ram   21 December 2014

Demand notice drafted, please correct.

I prepared the following demand notice to be issued to the borrower, Please let me know if it is okay to send or it there is any correction needed. Thanks in Advance.





My Name
My Address

Borrower's Address

Dear <Name of the Borrower>,

Sub: Demand Notice for the repayment of Loan.

When you are in financial troubles on your request I lent Rs.1,50,000/- to you on May 28, 2013. You have agreed to repay the loan amount with interest at the rate of 20% within 3 months, On expiry of 3 months I demanded you to fulfill the obligation, but you have failed to keep up the promise. For one reason or the other you have been postponing the repayment of loan. Considering our relationship I have been patiently waiting for the last one and a half years to receive the payment.

As I am in dire need of money to meet my personal requirements, I cannot wait any long. As such, I once again demand you to pay the amount within 2 months from the date of the receipt of this notice. Failing which I will take legal action against you or your legal heirs for recovery of the amount along with the expenses incurred by me in this regard.

Your Sincerely.



 14 Replies

Hardeep (Business)     22 December 2014

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 :

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 "


DISCLAIMER : General information and advice provided is without any warranties as to suitability for any use, correctness and application to any specific case. Please always take proper legal counsel . However, if it helped anyone even a little a " thanks" via the " Thank Contributor " button would be appreciated and would encourage me to keep on making efforts :-) . I am also always open to corrections and further learnings from more experienced Seniors here.



1 Like

Jai Karan Nagwan (consultant)     22 December 2014

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.
1 Like

ram   22 December 2014

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"

ram   22 December 2014

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.

Adv k . mahesh (advocate)     22 December 2014

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 

1 Like

ram   22 December 2014

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?

Jai Karan Nagwan (consultant)     22 December 2014

Meet any advocate to draft notice.

ram   22 December 2014

Jai Karan Nagwan,

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

Rushil (Junior Counsel)     24 December 2014

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.

ram   24 December 2014


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.

Rushil (Junior Counsel)     24 December 2014

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.

T. Kalaiselvan, Advocate (Advocate)     27 December 2014

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.

ram   27 December 2014


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

ram   27 December 2014


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.

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