Stamp duty for giving 5lakh credit

Hi all,

One of my friend is giving credit of 5 lakhs Rupees to his friend. Please guide me what agreement has to be prepared for that and what is the stamp we have to pay.

Thanks & Regards

Devaraju K

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M.S.Bhalerao (advocate) 02 November 2010

if the period is upto 3years it will be a short term loan and a Demand Promisory note will suffice. If the period is longer then a term loan agrrrement will have to be executed. stamp duty will be according the state regulations.

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