Loan documents! urgent!

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2013 HELLO SIR,
I AM GIVING LOAN TO A PERSON WHO IS A FRIEND TO ME, BUT I WANT TO ENSURE THAT THERE IS NO COMPLICATION AT THE TIME OF DISCHARGE HENCE I NEED TO KNOW THE DOCUMENTS WHICH I SHOULD GET SIGNED BY HIM OR ANY OTHER INFORMATION WHICH I SHOULD ASK FROM HIM.THE AMOUNT OF LOAN IS 2LAKHS. PLEASE SUGGEST AS SOON AS POSSIBLE.
THANK YOU SO MUCH.

REGARDS.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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17 December 2013 you should have security in the form of documents related and property above 2 lakhs onwed by receiver of loan signed on non judicial stamp paper.

Copies of checque payment as loan to him.bank pass book entry for both parties and reciept issued to him and he signs and acknowledges that he received it with the date and place of receiveing.

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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17 December 2013 Legally you can't take property against loan because you are not engaged in the MONEY LENDING BUSINESS. Money lending business requires LICENSE.
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(It means it would be illegal if you do so).
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So better you take POST-DATED CHEQUES from him of the date when he is promising you to return the money

and

a confirmation of loan immediately the cheque is cleared now.
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If he remains unable to pay on that due date; he would be a DEFAULTER and you can sue him in the court. The court will order him to send to JAIL (100% SURE)...in addition to the order of returning the amount with interest.
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BOUNCER (QUESTION TO YOU) :
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Would you still like to give him a loan if such circumstances happen in future?
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