Stamp paper

RajaRajachozhan (Querist) 21 December 2016 This query is : Resolved
Is it enough to prepare a Promissory note (prepared in TamilNadu) for the loan given, on a Rs.20 Stamp Paper (irrespective of the amount of Loan) ?

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kavksatyanarayana (Expert) 22 December 2016
if both the parties agree, loan may be given on promissory note and it requires terms and conditions like period, interest etc. and requires only revenue stamp for Rs.3/-. If any Bank gives loan they ask surety/hypothication deed.

Rajendra K Goyal (Expert) 23 December 2016
Promissory note need not be executed on stamp paper, it should be on plain paper containing necessary ingredients affixed with required revenue stamp.

RajaRajachozhan (Querist) 23 December 2016
Thank you Sirs, Mr.Kavksatyanarayana and Mr.Rajendra K.Goyal

Rajendra K Goyal (Expert) 24 December 2016
You are welcome, meanwhile may wait for valuable contribution from other experts.

V R SHROFF (Expert) 24 December 2016
Stamp Paper not required.
On Proper format, requisite Revenue Stamp be fixed.

RajaRajachozhan (Querist) 25 December 2016
Thank you Mr.Shroffji for the valuable guidance.
Incidentally, I have a question whether any monetary limit for taking loan through Promissory note ? It is not an academic question. My friend's wife has /is taking loan from her husband Rs.15 lakhs to purchase a Flat. The loan is only 30% of the cost of the flat. She is aged 65 and cannot take loan from banks or housing finance companies and hence taking loan from her husband. Kindly clarify.

Rajendra K Goyal (Expert) 26 December 2016
Promissory note can be of any amount. Amount against it is payable on demand. Limit of loan expires in three years, if not renewed / acknowledged.

If terms of payment need to be mentioned agreement can be executed.

Dr J C Vashista (Expert) 30 December 2016
Agree with experts, amount is irrelevant for promissory note.

Guest (Expert) 30 December 2016
Limits of A Promissory Note is Only Rs.20000/- in case of Cash Transactions

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