Loan contract between wife and husband

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pratyush (Querist)

07 April 2016 Dear friends,

One of my friends is in USA and his wife is in India.His wife is expecting some money from his husband so that she can take a piece of land and construct a house in Hyderabad.But she wants to keep the property on her name and she is ready to pay back in the future (interest & Principal amount) to her husband.Now what sort of loan contract should be created between wife and husband and the loan contract should be trouble free even in case there is any problem in the future like divorce/separation etc.

CA ALOK KUMAR

CA ALOK KUMAR (Expert)

08 April 2016 Dear Pratyush
Loan agreement must contain following relevant points, considering the case:
1. Rate of interest
2. Tenure of loan
3. Repayment clause of principal
4. Repayment clause of interest
5. Purpose of loan.
Further, it would be advisable to get loan agreement registered rather than just notarized.
Rest, you may feel free to ask for further clarification.
Thanks

pratyush

pratyush (Querist)

10 April 2016 Hi Nandan,

Thanks for the reply.
I have 2 more questions.

1.Both parties(wife & Husband) should be present in the registration office.right?
or else give some power of attorney to some relative to register the contract in the registration office (as the husband is in USA).right?

2.I came across the following in one of the websites where they are talking about such contracts between wife and Husband (Signing the contract and later on going for the divorce).

"Such contract/agreement will not remain valid in case your wife claims her right over the property and take legal option for this.
The Hindu Marriage Act and other related acts will override the agreement signed between you and your wife. You should not go for such type of arrangements as it will complicate the matter in future."

Can you please throw some more light on this?

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