MR - have taken loan that have interest

Dear Client,
Your query lacks information and transparency to address it properly. From the contents of the query, it is not transpired the source of availing loan, i.e, whether you took the loan from Bank/NBFC/FIs or any private entity or individual which is crucial to access the legal remedies specially when an abnormal and irrational rate of interest is charged on a loan from the borrower which is impermissible and unacceptable under the governing law. However, be informed that in India, moneylenders are governed by the Money Lenders Act, 1957, in different states. Any individual/organization engaged in a money lending business must hold a license from the appropriate authority, such as the RBI or the State Legislature. A money lending license is usually granted by the Revenue Department of the respective state government in compliance with the provisions of the Money Lenders Act and the state-specific rules. If any person or a group of persons is involved in trading of money lending or any other financial transaction without any license or permission of the concerned regulatory authority, then they may be booked under the Prevention of Money Laundering Act, 2002 (PMLA) which was enacted to fight against the criminal offense of legalizing the income/profits from an illegal source, once reported to the vigilance cell. The offender can face imprisonment for not less than three years, extending up to seven years. So, in the given scenario, to stop the threatening or harassment of money lender, first ensure whether the lender is carrying out his/her money lending business with a valid license or not, and in the absence of a valid license, you can serve a legal notice to the lender asking her to refrain from threatening or harassment failing which, the matter shall be brought to the notice of Vigilance Cell and the concerned regulatory authorities under PMLA and State Revenue Deptt who issues license for money lending business. If required, seek legal advice from an Advocate to navigate the issue in the right way.

Dear client,

1. About the Loan and Interest Rate

An interest rate of 1% per day means about 30% per month (360% per year) — which is usurious and illegal under Indian law.
No registered lender, NBFC, or bank can charge such a rate. Only informal moneylenders sometimes do this, which is treated as exploitation and may amount to a criminal offence if they are unlicensed.

Under the Reserve Bank of India (RBI) and State Money-Lending Acts, charging such excessive interest and threatening borrowers is prohibited.

2. On Harassment Calls

If the lender or their agents are calling you repeatedly, threatening, or abusing you, it constitutes criminal intimidation and harassment under the Indian Penal Code (Sections 503, 506, 507) and the IT Act if done over phone or WhatsApp.
You have full right to file a police complaint at your nearest police station or through the Cyber Crime Helpline (1930) or the National Cyber Crime Portal at https://cybercrime.gov.in
.

Mention in your complaint:

The phone numbers used for threats or repeated calls.
The name of the app, company, or person who gave you the loan.
Screenshots, call logs, or WhatsApp messages as evidence.
The police can register it as a case of criminal intimidation and extortion if threats are involved.

3. If the Loan Was Taken from an App or Online Source

Many illegal loan apps operate without RBI or NBFC authorization and charge high daily interest rates.
If you took the loan through such an app, immediately:
Stop making payments until you verify the legality of the company.
Block the harassing numbers and save screenshots.
Report the app or lender to the RBI and cyber cell.
The RBI and the Ministry of Electronics and IT have issued repeated advisories that such loan apps are fraudulent and punishable.

4. If It Was a Private Individual (Moneylender)

If you took the loan from a private person charging 1% per day, that person may be violating the Money Lenders Act applicable in your state.
You can:
File a written police complaint under Sections 384 (extortion), 506 (criminal intimidation), and 420 (cheating) of IPC.
Mention clearly that the person is charging illegal interest and using threats.
The police can summon the person and restrain them from harassment.

5. Practical Steps

Do not respond emotionally to threats — record or note every call.
If they share or threaten to share your personal photos or contact details (common in loan app scams), it is a cybercrime — report immediately.
If your salary or bank account is at risk, inform your bank to monitor suspicious withdrawals.
Keep all communications in writing and avoid paying cash.

6. Legal Remedies

You can:
File a police complaint for harassment and extortion.
Send a legal notice through an advocate warning the lender to stop harassment.
Approach the District Legal Services Authority (DLSA) if you need free legal aid to help you draft the complaint or deal with the lender.