Documenting loan given

Querist : Anonymous (Querist) 16 July 2018 This query is : Resolved
We have given loan to our relative. We wish to get a document from them. What type of document can be received. what is the eligible rate of interest legally.

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R.K Nanda (Expert) 16 July 2018
Contact local lawyer.

R.K Nanda (Expert) 16 July 2018
1.promissory note.

2.loan agreement.

3.guarantor agreement.

Sudhir Kumar, Advocate (Expert) 17 July 2018
If you have already given money (as appearing from your facts ) then you are not getting any document from the said present relative (future enemy)

Sudhir Kumar, Advocate (Expert) 17 July 2018
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:-

(i) Who lacks business sense and cannot raise funds out of his own business and suddenly wants to be rich.

(ii) 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.

(iii) Who knows he can afford not to refund.
(iv) Who trusts his thick skin
(v) Who intends not to refund
(vi) 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 :-

(i) Who has surplus money.
(ii) Who displays and boasts of such surplus money.
(iii) Who stupidly believe that there will be a refund.
(iv) Fails to realise as to why he alone (not bank) is being contacted for loan.
(v) Who has extreme trust on the debtor
(vi) who are either stupid or extremely greedy of the unusual (or illegal) rate of interest.

Such loans are always given

(i) Without documentation.
(ii) Without witness
(iii) Without guarantor.
(iv) During cordial relations

Soon after giving such loan :-

(a) Relations are no more remain cordial
(b) Business started by such money (easy money belonging to other) invariably fails.
(c) Such loans always sink and not refunded.
(d) Person seeking such refund suffers at legal process.
(e) Person seeking such refund legally or by persuasion is socially criticised.

Dr J C Vashista (Expert) 17 July 2018
Well analysed and advised by expert Mr. Sudhir Kumar, I endorse.

Kumar Doab (Expert) 17 July 2018
Pls post with your ID and not as AQ and you can get many replies.
Your ID does not mean your email id or phone number and don’t post these also.

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