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Loan from a friend now unable to pay back what action can he take
10-May-2023 (In Recovery Law)
I had taken a loan of 50,000 three yrs ago from a friend.. i had agreed to pay 4000 monthly intrest but it was not mention in the legal paper that i had signed that time.. it was only mentioned about me taking a loan of 50,000 from so and so person. I am now in severe financial crisis and hve told him that i would pay only principle amt. And not intrest as i have paid intrests for almst 2.5 yrs.. bt dat guy is now threatening me... he wants his intrests frst and den the main amt. He has abused me a lot times.. harrassed me too.. is it legal to charge intrests without a licence.. wt shud i do?
In case of loan, a certain rate of interests can be charged on the principal amount. The rate of interest, monthly installments and the period needs to be fixed before the loan is give. When you are making payment of Rs 4000 per months as an interest then till what period are you supposed to make the payment of interest? Since you are making payments of Rs 4000 for 2.5 years then you have already paid Rs 1,20,000 which is more than 100% interest including the principal amount. But if there is no agreement as to what is the rate of interest that will be charged on the principal amount then you are only bound to pay back the principal amount.
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Adv. Siddhant Sharma
Delhi | 200+ Answers
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