I borrowed 1 lakh from a friend saying 10% interest per month

645 votes

Yes, WhatsApp acknowledgment can be used as evidence. However, 10% monthly interest may be considered excessive by court. Liability depends on agreement terms, duration and proof of payments made as per the concerned provisions of law.

Advocate Pankaj Bajaj LawRato

788 votes

NO, you are not liable to pay interest of 10% every month if you have repaid the principle amount of rupees 1 lakh, the interest part is only valid till you have that one lakh amount of your friend with you after the repayment you are not liable to pay any amount as interest.

Advocate Moksh Jain LawRato

998 votes

Yes, your WhatsApp acknowledgment forms a valid contract under the IT Act. You are legally liable to pay the mutually agreed 10% interest. However, exorbitant interest rates can be challenged in court.

Advocate Pankaj Bajaj LawRato

525 votes

As per the facts stated by you, the WhatsApp messages acknowledging the loan and agreeing to pay interest can be used as evidence of the terms mutually accepted between both parties. Therefore, merely repaying the principal amount of ₹1 lakh may not automatically discharge your liability towards the agreed interest. However, an interest rate of 10% per month (120% per annum) is excessively high and may be considered unreasonable or penal in nature. If a dispute arises before a court, the court has the discretion to examine the circumstances of the transaction and determine whether such a rate of interest is enforceable. The lender will have to establish that there was a clear and voluntary agreement regarding payment of interest at the said rate. If there is no written loan agreement apart from WhatsApp chats, the evidentiary value of those messages, the conduct of the parties, and proof of actual payments made will become relevant. You should preserve all records, including WhatsApp conversations, bank transfer details, receipts, and any acknowledgment of repayment. Therefore, while the lender may claim interest based on the WhatsApp acknowledgment, you can contest the excessive rate before the competent court. It is advisable to seek a negotiated settlement or obtain legal assistance if any recovery proceedings are initiated against you.

Advocate Sanket Ganpat Khamkar LawRato