1. One can always lend money to another which is called accommodation oan. Howeevr that does not make him entitled to claim interest.

2. Unless and until one have Money Lending Licence he can not lend money and charge interest.

3.So in this case you can lend him money and to ensure your refund make a Promissory Note signed by the borrower.

4. get this Pro Note signed by 2 witnesses as well.

Your friend can obtain personal loan from bank if he so desires

2) if you want to give loan give loan by cheque

3) obtain acknowledgement of receipt of loan

4) obtain letter from friend that loan would be repaid in x period with interest

5) take post date cheque for loan amount and interest

1. Execute a loan agreement detailing the terms of the said loan on Rs.100/- stamp paper and get it notarised.

2. Collect a Promissory Note from him promising you to pay the said lent amount after the specified period.

3. Since you can not lend money against interest without taking license from the RBI, calculate the interest before hand, add the same with the principal amount and show that he has taken the said total amount towards loan to be repaid after that specified period.

4. It will be ideal if you can take deposit of any original title deed of the borrower towards collateral security by mortgaging the same with you.

5. Your friend's wife can be the surety but what will you do if he fails to repay you? You shall have to attend Court case for 10 years to recover your dues from the borrower or the surety.

6. Property mortgaged by registering the mortgage deed will ensure return of your lend amount after the specified period of time.

Dear Sir,

The safest thing is to take blank signed cheques from him

Secondly also take promissory note blank with signature. You should not wisher before anybody the the said hand loan carries interest whether it is low rate or higher rate since it comes under the definition of money lending business. You may or may not take surety, if he is not government servant then take one signed blank cheque from his friend as security.

1) take his any assets worth rs 3,00,000/- as security and plus his wife or any family members as surety.

Hi...,

You must enter into a loan agreement on a duly stamped paper and take post dated cheques from your friend and also mention the details of the cheque in the loan agreement itself.

As far as surety is concerned, wife of your friend can become a valid surety, there is no harm in this.

Thanks.

1. Try to get a mortgage deed registered also if possible which will ensure repayment of the said loan amount to you on time.

2. At least get a loan agreement signed and notarised detailing all the terms of the loan therein.

If the loan is genuine, then make sure that you have the source to show your income to fund such debt.

If source is there, then make sure that the rs.20/- stamp paper is printed by using the words for example " I A , aged 34 years son of B, identified by aadhar 12343434 residing at C along with my family (wife and 2 sons). I am occupied as ,,,,,,. I incurred an expense of 3L which i am unable to fund due to insufficient funds in my savings bank a/c vide 12343444 in bankl abcd at branch. In order to meet the expense of 3L, i am constrained to borrow from Mr.X Rs.3lakhs (Three lakhs only) with a simple interest at the rate of 16% per annum. I bind myself to repay the principal amount of 3L along with the interest of 16% per annum on 5th of every month. I also bind my wife Mrs. xxxxxx D/o identified through aadhar number.... through this loan agreement who is the legal representative to represent on my behalf in the case of non-repayment of the outstanding loan amount as on the date it falls due. In furtherance of this loan agreement dated 18-jan-2018, I also undertake to duly repay the principal loan amount along with the interest within 12 months from the date of acceptance of the loan amount. i issue 12 post dated cheques duly signed by me for the principal amount of Rs.3L and interest calculated at the rate of 16% per annum. Also, in furtherance off the loan agreement, my wife consented voluntarily to stand as surety and affixing her signature for having stood as surety.

This loan agreement has been duly signed and executed before the witness whereof my signature, surety's signature and witnesses signature, identity (aadhar) are affixed.

This is just a draft.

Get the cheques of the bank's branch which is specified in the agreement.

Ensure to get a copy of his previous signature in some other records and compare with the current one to ensure reliability. Similarly, his wife signature as well.

Thanks for your appreciation

In this condition you should make a formal contract without mentioning rate of the interest but mention the final amount which would be paid by him with the interest. A person who has no money lender licence cannot lend money on the interest.You can take security in lieu of the repayment of borrowed money, this act will render the payment into an actionable claim therefore you can execute this actionable claim by moving a civil suit.

 According to Negotiable Instrument Act a promissory note without attestation is valid therefore no need to take attestation from two witnesses.

1. Execute a promissory note with your friend. This will entitle you to file a summary suit for recovery of money if he defaults in repayment of the loan to be advanced to him. It should be witnessed by two witnesses.

2. This apart, obtain post dated cheques from him towards repayment of loan.

3. There is no surety in a promissory note.

Make a loan agreement and show all the details of loan and mode of repayment default clause etc...

Yes a promissory note after adding the interest will be sufficient to protect you interest in the present set of facts. Also take signature of 2 witnesses after writing the terms of loan on a stamp paper.

Regards

I will go with Promissory note added the amount with interest as the full payment, Cheques and 2 witness signature: This will suffice.

The documents which you have taken for your safety of your amount of loan are sufficient for the recovery ,if problem arises.

But , you should be sure for the signature of your friend in the documents ,specially in the cheques and also the availability of his account in the bank. Many times due to such types of mistakes , case becomes weak in the court.

Surety should be the person , who knows both of you. Indeed the wife of your friend is a best witness/surety . You must mention the reasons of asking loan from you , mode of payment amount by you(If , you give this amount by cheque clearing in your friends account ,will be plus for the safety ) and you should also mention in the agreement containing stamp paper that he is taking amount as friendly loan.

Good luck and dont forget to positive rating .

Hand loans are generally given without interest.

You may obtrain promissory note besides loan agreement in a NJS paper.

You can have a post dated cheque for the amount lent with interest from your friend

If he is ready to furnish the particulars of a surety or guarantor then you may proceed as per further formalities in this regard

I will go with Promissory note added the amount with interest as the full payment, Cheques and 2 witness signature.

Yes you can do that.

This will be safest way to recover the loan amount.

You can enter into the loan agreement with him with all the terms and conditions as per your wish and get it attested by the genuine notary and registered it at a sub-registrar office. On the other hand you can have post dated signed cheque from him as well.