urgent help on Business loan

1. fIRST OF ALL, YOU NEED TO TAKE LOAN THROUGH A/C PAYEE CHEQUE

2. SECONDLY, TO MAKE THE TRANSACTION MORE ENFORCEABLE YOU MAYENTER INTO A LOAN AGREEMENT BY DRAFTING THE SAME & MENTION CLEARLY IN SUCH LOAN AGREEMENT THAT YOU ARE TAKING A INTEREST FREE  LOAN TO AVOID ANY FUTURE PROBLEMS.

3. FOR INCOME TAX PURPOSE ONLY ENTRY THROUGH A/C PAYEE CHEQUE WOULD BE SUFFICIENT TO HELD TRANSACTION LEGAL, BUT IT WOULD BE GOOD IF U ALSO DRAFT A LOAN AGREEMENT.

BEST WISHES FOR YOUR BUSINESS GROWTH & PROSPERITY

thanks for the speedy reply. the agreement that you mention dose that need to be registered or unregistered? like on a non judicial stamp paper? if so then what value. can you kindly help me out with a sample loan agreement. can i repay the loan amoumt after say three years in parts for say another 5 yrs. so the totalterm of the loan will be around 8 to 10 yrs. and do i need to show this loan in my IT returns. and does the same apply to my friend.  i'm bit concerned as i dont want my friend to invite any problem because of me. so its better i know all the formalities and procedures before i accept the help from him.

thanks and regards