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Abhishek Mawle (x)     19 May 2013

Loan to brother

I and my sister want to loan an amount of Rs 5 lacs to our younger brother which should be returnable in a period of 5 years in installments or in one time at Bank Interest rate.

To ensure that he returns the money,we want to mortage his share in ancestral property.

can we execute the agreement on plain paper.

Do we need to execute the agreement on stamp paper and if so,what should be the value of stamp paper.

can we charge insterst even if we do not posess money lender's license.

any other things that we need to follow.Please advise.



Learning

 1 Replies

sree 9491505984 (Lawyer, Hyderabad)     21 May 2013

My friend,

Better to have writings in  a 100/- stamp paper. You donot require any licence to charge interest.  Most important thing is The paper which ur taking from ur  brother is legally valid only for 3 Years. But ur planing to take back ur money after 5 years. so  becareful about it


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