Hand loan document to safeguard money given to friend.

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You have already given a substantial amount, so it is important to secure your position legally at the earliest. A simple signed paper on plain sheet may have limited evidentiary value unless properly drafted and supported. However, it is not correct that a stamp paper document has no legal validity—what matters is proper execution, contents, and proof of transaction. You should immediately formalize the arrangement by executing a Loan Agreement or Promissory Note on appropriate stamp paper. This document must clearly mention the amount (₹25 lakhs), date of lending, mode of payment (bank transfer is preferable), repayment schedule, interest (if any), and consequences of default. It should be signed by your friend and preferably attested by two independent witnesses. For stronger protection, you may also: Obtain post-dated cheques for the repayment amount Ensure acknowledgment of debt in writing (this helps extend limitation) Keep all bank proofs and communication records Registration is not mandatory for a loan agreement, but it adds evidentiary strength. If the borrower is cooperative, you can even consider creating security (like property or asset backing). If there is any delay or doubt about repayment, do not wait—legal notice can be issued to safeguard your rights.

Advocate Sreebalaji LawRato