safety of loan amount

r.pratap (Querist) 08 October 2015 This query is : Resolved
Sir.
My query is that I want to give loan of 2.5 lac on interest to my known person , what agreement should I make , on stamp paper or or by revenue stamp or simple paper .in case cheques given without date and amount whether i t alone wll do.
Thanks for reply in adv.

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Anirudh (Expert) 08 October 2015
You have to get a proper promissory note duly signed by the borrower and witnessed by 2 persons. Promissory note on plain paper will do. Indicate the cheque No. and date through which you are giving the loan. Please mention that the amount is being given as a friendly loan (this is to take care that in future he should not say that you are not having money-lender's licence). Since you will be giving the loan through cheque, there is no need for Revenue Stamp. However, even though you may give the loan by cheque, getting his signature on the promissory note over 1 rupee revenue stamp is also OK.

Give the loan through cheque (certainly not by cash). If you give by cash it has Income Tax implications.

Without promissory note, receiving cheques without date alone will not do (as you will not have any proof that you first gave a loan to him).

Rajendra K Goyal (Expert) 08 October 2015
Get a promissory note executed.

Guest (Expert) 08 October 2015
A Money Lender Would Obviously afford a Paid Legal Guidance which would help and Serve him better in Future as Well.Consult A Local good Advocate and he would be helpful to you in Long Run.First Obtain the Money Lender License Legally.

K.S.Srinivas (Expert) 12 October 2015
Agreed with the expert Anirudh.

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