Dear Attorneys,
One of my friend has borrowed money from me to pay off his bank loan. The amount is 7 Lakhs. Do I need to have RBI Lending Licence for this transaction to be valid?
I am not a money lender by profession.
Nagendra*** (Manager) 29 August 2012
Dear Attorneys,
One of my friend has borrowed money from me to pay off his bank loan. The amount is 7 Lakhs. Do I need to have RBI Lending Licence for this transaction to be valid?
I am not a money lender by profession.
Ashish Singla 098140 76600 (Cheque Victim's Lawyer. LUDHIANA (PB)) 30 August 2012
HI ,
You hv paid the amount to your friend for any of his purpose , it does not matter.
The main concern is that you have paid the amount in cash or through bank.
If you have paid cash than this is uncounted money , it will be difficult to recover you in case he dont return you.
If you have paid by bank trasaction than its recoverable and treat yhis amount as UNSECURED LOAN in your books of accounts , you need not to take any Licence from RBI in this type of narated transactions. In business giving and taking unsecured loan is normal feature but throgh bank entry not in cash ( only up to Rs.20,000/- is permisible in cash ) .
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