Dear All,
I along with my friend are planning to start up a business. My friend (SB) is taking a loan, lets assume Rs 5L @ 13% interest, the repayment which as of now would be deducted from his salary account as he's still not left his job, whereas I am arranging, say Rs 4L, from family, friends, etc.
My questions are as follows:
1. When the time comes for repayment of loan, whatever is the monthly EMI (@13% interest) is being deducted from his salary account. This repayment is in-return being done by our company to him. Now, technically speaking, there should be some repayment done to me also, by our company, at what rate? Should this be at the same interest rate i.e. 13%?
2. What are the ways in which the time for SB's loan repayment to the bank be minimised? How would this effect item 1 above, and how do we get over those issues?
I really hope the above questions do not seem wayward, because I am really confused regarding this. Your help and any further suggestion would be really appreciated.
Thank you very much.
