Private Money Lender Harassment charging 8% interest per month
2 years ago
I borrowed 1 Lakh for 8% interest from a known person on April 2019. He said he is getting money from his personal lender to give me just to look he is not involved - it was lie as per my view.
I understand 8% interest is too much and i borrowed it to control the torture from credit card banks like SBI and HDFC. I started a business during those time and i was struggling to pay the interest every month. I thought i can able to pay back sooner but i can't able to. Total sum of 56000/- rupees have been paid to this guy till date. After sometime i am unable to pay until now. So he made some decision and told me to settle the value by last april 2021 with the sum of 1.6 lakhs plus i borrowed 33k here and then to pay of my other debts so totally he says i owe 1,93,000 + principle 1 lakh. And he is torturing me to the core and harassing with bad words. Even i got the business order but it got delayed so im unable to repay him.
Now i am telling him that i will go to the job and pay you in few months but he is forcing me to pay at any cost with in a week, which i cant, i have struggling family. Still credit card debt isn't over, because of credit card default i end up getting money from others and this interest based loan is my first time, i never took a loan in my life. Please advice what should i do and how should i move forward with this. Please advice i understand i made one of the foolish mistake because of other debts now im stuck with this extreme condition.
As per the facts mentioned, you can file a police complaint of harassment against the lender and from a legal perspective, the terms and conditions of personal lending are legally non-binding and non-enforceable.
Once we take loan from somebody or a bank then it is our duty to return the loan within the given time. If you are not able to return the loan then you need to talk to the person and find out a middle path by talking. Here there is nothing legally you can do except the part that he cannot harass you or torture you.