Can i take a personal loan and lend it to my brother if he buys a house as my wife filed a 498 once
Can i take a personal loan and lend it to my brother if he buys a house as my wife filed a 498 once
Sudhir Kumar, Advocate (Advocate) 03 November 2023
Money given to friends and relatives is always a charity in the garb of loan which is given in expectation of refund but always taken with intention of non-refund.
Such loan is taken by a person:-
Who lacks business sence and cannot raise funds out of his own business and suddenly wants to be rich.
who cannot raise bank loan because :-
Either
he himself is not creditworthy
Or
the purpose for which he seeks loan is illegal
or
the purpose for which he seeks loan is not at all commercially viable.
Who knows he can afford not to refund.
Who trusts his thick skin
Who intends not to refund
Who has made fortification against action of refund.
So he has to find someone who can part with his money. SO he finds a lender near him (friend or relative)
Such loans are given by the persons :-
Who has surplus money.
Who displays and boasts of such surplus money.
Who stupidly believe that there will be a refund.
Fails to realise as to why he alone (not bank) is being contacted for loan.
Who has extreme trust on the debtor
who are either stupid or extremely greedy of the unusual (or illegal) rate of interest.
Such loans are always given
Without documentation.
Without witness
Without guarantor.
Business started by such money (easy money belonging to other) invariably fails.
Such loans always sink and not refunded.
Dr. J C Vashista (Advocate ) 04 November 2023
Is it a wise decision to obtain personal loan and lend it to brother for purchase of house.
How loan /house under purchase is related to case u/s 498A IPC ?