Remedy as inability to pay interest every month on money borrowed

My father in law borrowed Rs.2,40,000/- from his friend and kept paying interest of Rs.10,000/- per month for the past two years. The lender is not a registered lender and the loaned amount was not known to anybody at home. Now, since everyone at home got aware of this all were shell shocked. As my in laws are not financially stable, they are unable to pay back a single penny to the lender. The lender is demanding to continue paying interest of Rs.10,000/- per month or pay back the capital amount at once. What do I do? Thanks

Answers (2)

53 votes

If he is a friend then act as a friend as well. Mediate and bring terms to place as currently the situation is not feasible and moreover there is a lack of financial stability. If thing goes well he should comprehend.

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252 votes

If the money lender does not have money lending license then he cannot charge interest on the said loan. Kindly let me know if your father-in-law has signed any loan agreement with the said money lender. Kindly ask him since how long is he paying the instalments and how much he has paid till now. If he has paid the instalments through cheque then it will be helpful for him to defend his case. Kindly provide me with these details for detailed advice. For any further clarification kindly book a consultancy call.

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