Recovery of loan
NB
(Querist) 01 July 2022
This query is : Resolved
My father had given a personal loan of 30 Lacs to a close family friend's friend (for his business) in 2017. This person had borrowed the money from my father at 2% from my father but after our discussion, we reduced it to 1.5% interest. The person who borrowed the loan was paying my father interest for 3 to 4 month months and then started defaulting. In 2018 my father had a stroke and after that, I was able to connect with this borrower and have been in touch with him about the loan.
The borrower asked us for a time extension and he was supposed to clear the loan by 2018. Then again he asked for an extension so we extended it to the end of 2019. By Feb 2020 we managed to collect 7 lacs from him. Then for the past 2 years due to covid as the reason, he has been asking for more time extension and he has not made any payments till now.Â
The 30 Lacs original amount with simple interest of 1.5% till June 2022 comes to Rs.56,54,000/-Â (minus 7 lacs that we were able to collect back)-- Total Balance remaining is around 50Lacs.
As collateral, we have his home apartment papers and an original passbook of his wife's land from a village. The loan was borrowed by both husband/wife team together.
Any thoughts on what can be done to get the money back with the interest amount? What are my options? And if I involve an attorney - what would be the attorney's fees for the recovery of the loan? This is in Hyderabad (Telangana)
Dr J C Vashista
(Expert) 02 July 2022
It is an illegal and invalid transaction since you or your father may not have money lending licence.
It would be better to settle the issue amicably.
Whether you or your father had money lending licence ?
P. Venu
(Expert) 02 July 2022
No definite suggestion is possible unless the documents are perused and issues discussed.
Advocate Bhartesh goyal
(Expert) 03 July 2022
If your father had lent the money on interest
not more than two or three persons than the money lent by your father will not be treated as illegal and invalid transaction and can be recovered through legal process .
