Yes definitely there is a law to forbade to charge exorbitant rate of interest on a friendly loan ( in commercial loans one should have a lender’s license as to adopt it as profession and business.
On the other hand you can charge a simple rate of interest as per the prevailing banking rates of interest in India plus can claim for the return of your principle amount by the legal heirs of the deceased person as the rights and liabilities both go along after the demise of the person to his legal heirs.
First try to establish that in actual a loan was given to your father’s friend which has been only partially re-payed by him during his life time and now it should be recovered out of his property which has been inherited by his legal heirs.
For further legal assistance on nominal charges, you can contact me on below mentioned address and Phone number, Please call after Court hrs to get a suitable appointment date and timing.
Advise, always take assistance from an experienced and well educated Advocate of the field. You can see my credentials on this very site for my appraisal.
for Anand Bali & Associates
Anand Bali, Adv.
(B.Com., M.A., LL.B., M.B.A.)
Supreme Court Of India,
High Courts of Delhi, Chandigarh, UP & UK.
For Civil, Criminal, Property, Recovery, Consumer,
Service, Divorce & Family Dispute Matters
