Finance to a friend?
salman khan
(Querist) 25 June 2012
This query is : Resolved
i would like to know whether anybody finance to anyone without possessing proper license, i want to finance my friend some of Rs.200,000/- for business purpose whether i am entitle to get the profit from the same, he said they give Rs.3000/- monthly profit to me and Returned of Rs.200,000/- after 2.years, which type of document we have to created to protect the interest of the same.
M.Sheik Mohammed Ali
(Expert) 25 June 2012
first you get pronote for the said amount its valid for three years, and make mutual understand agreement with aforesaid terms and condition. with 100 rupees stamp paper.
Adv.R.P.Chugh
(Expert) 25 June 2012
There are certain state legislations that prohibit money lending without a licsense or permit. If your state is covered by such legislation you might end up losing money apart from facing the prospect of a punishment.
Consult a local lawyer.
salman khan
(Querist) 25 June 2012
we reside in maharashtra mumbia what is there terms and condition and in short whether some one can earn money by making as a financer because he just help and earning from his self income.
M/s. Y-not legal services
(Expert) 25 June 2012
if your transaction for just hand loan mean you can recollect your money. but if you do it as money lending business without proper license mean you are in trouble while recollect.
and no need any specific provision as "agreements should be in 100 rupees papers only". a pronote enough.
-y.not legal services-
Heena Khurana
(Expert) 25 June 2012
take a pronote from the person as well as a PDC(post dated cheque) for the full amount, in that case if the amount will not be paid by the peerson then a criminal case can be filed against him
salman khan
(Querist) 25 June 2012
whether i have to mention the profit amount that i am taking from him, if there is any ready made draft available for promissory note so please give and if not then any website available for this please help.
M V Gupta
(Expert) 26 June 2012
One time lending to person does not amount to money lending business. It is not clear whether the amount of profit you have mentioned is in addition to interest on the amount lent or no interest is charged? If the amount does not carry interest and you are to share profit only then it becomes an investment in the business. This has some implications. The receiver of money can take a stand at a future date that as he has sustained losses he cannot pay you the profit of Rs, 3000/- and thus escape the payment. Hence the arrangement is not a safe one. Better lend the amount as loan with interest and take security for the same.
salman khan
(Querist) 27 June 2012
Rs.3000/- is only profit and 1000/- is the monthly principal amount means he will give total Rs.4000/- for two year then whether proote is enough for this contract or other agreement should create.
please help
M V Gupta
(Expert) 03 July 2012
Any linkage with profit is a trap to evade payment. However if u are bent upon getting into this arrangement better enter into an agreement.
