Friend made a fraud took gold loan on my name and doesn't repaying

945 votes

If the gold loan was taken using your PAN and in your name, legally you are treated as the borrower by the bank or finance company. Therefore, the liability to repay the loan remains on you, irrespective of the understanding between you and your friend. Because of the default, the lender is entitled to report the account to credit bureaus such as CIBIL, which affects your credit score. However, if your friend actually took the loan and promised to repay it, you may take legal action against him for recovery of the amount you are forced to pay. You can first send a legal notice demanding repayment and compensation for the financial loss and damage to your credit reputation. If he fails to pay, you may file a civil recovery suit for the amount paid along with interest and damages. Proper evidence such as messages, transfers, or any written understanding will strengthen your case.

Advocate Vinod Todiwan LawRato

791 votes

the loan was taken without your consent If your friend used your documents, OTP, or signature without your permission, it can amount to criminal offences such as: Section 420 IPC Section 406 IPC Section 468 IPC Section 471 IPC You can file a police complaint / FIR against the friend.

Advocate Prashant Gupta LawRato