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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.

Dear Client,
In India, moneylenders are governed by the Moneylenders 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

Dear Client,
Your query suffers from a lack of information and transparency to address it suitably. You expressed your situation, but did not provide a cause of action that attracts a legal remedy. This is a virtual platform, and in the absence of a specific cause of action, suitable legal remedies cannot be suggested based on the standalone situation/circumstances. So, please revert to us with more details and a cause of action that requires a legal remedy. You may consider our paid consultati

Dear Client,
Unless a registered owner of a property empowers a person through a registered Power of Attorney empowering him/her to execute any kind of documents or agreements on his/her behalf, he or she cannot enter or sign any agreement or document on behalf of the original owner. So, in the absence of a POA, your mother cannot execute a rent agreement with a tenant letting out the said property of your father.

Dear Client,
As per the RBI Guidelines, Banks/NBFC/FI are advised to ensure that the contracts with the recovery agents do not induce the adoption of uncivilized, unlawful, and questionable behavior or recovery process. In the context, reference is invited to (a) Circular DBOD.Leg.No.BC.104/ 09.07.007 /2002-03 dated May 5, 2003, regarding Guidelines on Fair Practices Code for Lenders (b) Circular DBOD.No.BP. 40/ 21.04.158/ 2006-07 dated November 3, 2006, regarding outsourcing of financial servi

Dear Client,
Your query has no nexus with the advice of a legal counsel. Any kind of loan may be restructured subject to prescribed conditions and the discretion of the lending Bank, Reach out to the concerned Bank which can respond and resolve your query better than a counsel.

Dear Client,
Your query lacks information to respond it suitably. However, be informed that 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 takes steps for recovery of debts from the Guarantor attaching the security offered by the guarantor against the loan. Even in the absence of a borrower or guarantor his or her surviving legal heirs are held liable to write