v chandrasekhar (Sr.Manager) 26 December 2012

Format for hand loan agreement

Sir,

I want to help my friend with a hand loan of Rs. 5 lakhs at a nominal interest rate & my friend wants to give post dated cheques for repayment.

You are requested to provide a format which is legally enforceable just in case of any eventuality.

Thanks & Regards,

Reply Follow

2 Replies

Advocate Rohit (Advocate) 26 December 2012

loan agreement could only be executed by those who have a valid money lending license from RBI.

Thus, you require an agreement which doesnot come under the perview of loan but also takes care of your interest too.

Regards,

Advocate Rohit Dalmia

9324538481

Mumbai

Sathya Iyer (SM HR) 11 February 2014

The Q/A no. 91 of this link (https://www.incometaxindia.gov.in/questionbank.htm#G90 ) says interest on handloan taken from freind for constructing a house is eligible for Exemption.

I have taken a loan of 4 lakhs @ 12.50% PA from my relative and paying 50,000 as interest every year for the principal. Please let me know how to claim exemption on this amount.

Regards

Sathya