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Dear Client,

Yes, a partnership firm can apply for and obtain a money-lending licence in Assam under the Assam Money Lenders Act, 1934, provided it is duly constituted and registered and intends to carry on the business of money-lending as a regular commercial activity.

The Act requires every “person” carrying on or intending to carry on money-lending to obtain registration and a valid licence from the prescribed authority, and this requirement applies equally to partnership firms; lendin

Dear Client,
A borrower of loans is held personally liable for his or her debts for non-payment of the outstanding amount of the loans, and legally, there is no escape route to get rid of that liability. In the given scenario, you may negotiate or settle your dues against loans by following the steps like lowering your interest rate, arranging for a reduced interest rate is one of the most common requests a defaulter borrower can make to the Bank/NBFC, creating or restructuring a repayment plan

Dear Client,
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 p

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, mon

Dear Client,
A borrower of loans is held personally liable for his or her debts for non-payment of the outstanding amount of the loans, and legally, there is no escape route to get rid of that liability. In the given scenario, you may negotiate or settle your dues against loans by following the steps like lowering your interest rate, arranging for a reduced interest rate is one of the most common requests a defaulter borrower can make to the Bank/NBFC, creating or restructuring a repayment plan

Dear Sir,

The fact that you have a legal notice attached to the email means they are escalating the matter. Your first step should be to directly contact the chit fund company to understand the terms of their legal notice and the amount they claim is due. Do not ignore this communication.

Here's a breakdown of what you can do:

Review the Legal Notice: Read the legal notice carefully. It should state the outstanding amount, the deadline for payment, and the legal action they intend to take if

Dear Client,
Chit Funds are registered by State Governments under the Chit Funds Act, 1982 administered by the Ministry of Finance but with responsibilities of implementation resting with the States. A Guarantor/Surety is equally liable for repayment of the debt of the principal Borrower and if after exercising all the steps for recovery of debt against the Borrower fails, the Bank/Chit fund company takes steps for recovery of debts from the Guarantor/surety, attaching the security offered by t

Dear Client,
Merger of banks has no role to play in the matter. Section 19 of the DRT Act enables a Bank/NBFC or a financial institution to recover any debt from any person by making an application before the Debt Recovery Tribunal(DRT) having jurisdiction. A secured creditor may also simultaneously pursue its remedies under the SARFAESI Act 2002 as well as the DRT. Section 13(2) of the SARFAESI Act requires the lender to issue a written demand notice to the borrower. Sub-section (3A) of Sectio

Dear Client,

Lending money to a non-relative for business purposes without a license can be legally precariou, as most states require a money-lending license for anyone "carrying on the business of money lending." While a one-off "friendly loan" is generally permissible without a license, lending money for business with interest, especially to multiple people, could be construed as a regulated activity.

If you proceed, it is crucial to document the transaction with a formal, written loan ag

Dear Client,

First of all talk to your friends and explain your situation honestly tell them you are not refusing to pay, but you need time like 1 year or so and cannot pay double the amount. If your intentions are to pay then suggest a monthly repayment plan that is realistic even if it's Rs, 2,000–Rs.3,000 per month.

Charging 100% interest in 4 months is usury and can be legally challenged. If your friend threaten or harass you, you can approach the police or the nearest legal aid cell.