How can i lend money LEGALLY to one of my relative who is in need?
2 years ago
How can i lend money LEGALLY to one of my relative who is in need? Can i charge any interest on such amount, How much?
You can execute a loan agreement with definite terms and circumstances of the loan on a stamp paper and get it notarized and get it signed by both, borrower and lender, and two witnesses.
Thank you
For commercial lending of money and charging interest on that you need to have a license from the state authority to run that business of lending and loans. If you wish to help your relative by providing loan but not as business then you can have a simple loan agreement executed and also seek PDC plus promissory note from him. You may charge some interest if you wish.
Vaidehi Samant
Responded 2 years ago
A.Get a loan agreement drafted stating details of the parties, all the terms and conditions of the loan being granted, the amount, interest of any to be paid on annual basis, time before which loan should be returned, purpose of loan being borrowed, mode of payment etc. and get the loan agreement executed on 100 rupees stamp paper and get it signed from lender and borrower and two witnesses and get the same attested from a Notary by both lender and borrower wer and witnesses visiting a Notary. If you deem fit you can also pay the necessary stamp duty and registration charges and get the agreement registered in the office of Sub-Registrar of your concerned jurisdictional area to make it more credible which is upto you.
Thank you.
Regarding surity and stay of execution
Recovering Loan given to a Friend
Credit card payment
Joint account Chaque with minor signature only
Cheque and pronote
