Loan from individual to individual
Sundram N
(Querist) 04 July 2013
This query is : Resolved
Dear Sir,
kindly suggest that, on individual can give loan at a stipulated rate of interest to other individual.
This transaction is not violating the money laundering act and RBI licence act as the individual is giving and doing currency transaction without having any licence from govt.
This transaction is violating the provision of income tax act.
kindly suggest that individual can do the transcation of loan to earn interest.
M.Sheik Mohammed Ali
(Expert) 04 July 2013
if you are doing as business it will affect money laundering act, other wise it will not affect, you can get from them by pronote or cheque for security purpose.
ajay sethi
(Expert) 04 July 2013
does he have a moneylender license? if he dosent have and has been giving loans he would find it diffuclt to recover the outstanding loan amounts
Raj Kumar Makkad
(Expert) 04 July 2013
If the motive is to earn an interest rather to help a needy person then the same do come within the ambit of Money laundering and a license is required for that purpose otherwise the recovery shall be very difficult.
R.K Nanda
(Expert) 04 July 2013
agree with expert Sethi.
