My Father is a Shopkeeper, He borrowed around 25 lakh from 10 different people from nearby village, at the interest rate of 36% annum. He keep on giving interest to them, but principle amount is still the same. He sells fertilisers so he is on debt of 15 lakh of companies and large scale distributers. We have 20 lakh rupees with us and total amount of loan is 40 lakh. We have property of estimation around 50-60 lakh which is shop and home only. Since it's ancestor's property and my uncle already filed a case for this property, i think we are in the position to have whole right on property. What should we do?
Hi,
Here are 2 different issues involved. The first is of loan and repayment. The other issue is property Cass by uncle for which no much input is given by you. In regard to loan, it is suggested that you discuss with father and lenders to pay the amount in instalments and start paying.
Interest is too high, bank would have given you loan on 10% interest or even less. Ask your father to gift the peropty to you otherwise recovery of debt shall be by selling properties.
- Since, the ancestral property is already challenge by your uncle , so the question of selling the same by your father doesnt arise.
- The interest rate is too high and against the law.
- Try to settle the disputes of loan amont with all the leander amicably on the minimum amount. Try to understood them , that you have no fund to pay more than 20Lakh.
- If they are not ready to settle the loan on minimum amount then tell them to approach the Court for the recovery.
- If, they will approach the Court for recovery , Court will settle the amount on the minimum amount.
Few Facts: 1)Moneylenders are not the licensed ones. 2)There is no written agreement. 3)My father paid more than double in interest So few question: 1)If we are paying 20 lakhs we won't be able to pay rest, what should we do?(I took loan of 12.5 from bank in these 20) 2)If we are not paying anything, what are in trouble since money lenders' are kind of goons. 3)As there is case going-on on property, if we declare bankruptcy will we be able to save property? as it cost more than the loan. 4)I think we can't sell property by own since there is active case on that and we don't want to. 5)And if we are delaying payment loan amount is keep on growing, what should be best solution?
They cannot ask for interest but at least principal amount with RBI interest rate.
Stop paying Interest, this is too much.
Hi,
Our advice is bases on your inputs. After coming to know fresh inputs, you are suggested to have meetings with lenders and say boldly to settle the amount because their rate of interest is very high and even not permitted by RBI. In case of no written agreement, they may not force for higher rate of interest. As you have taken loan from bank, the bank might have taken security of some more amount and your steps of declaration of insolvent, will prompt bank to take possession of that security etc.
1) there is no agreement to pay interest at 36 per cent
2) they do not have money lender licence
3) loan sharks would not be legally able to recover money from you
4) if they threaten you file police complaint against them of criminal intimidation under section 506 of IPC
is there any stay granted by court against sale of property ?
2) you will not be able to sell the property if stay has been granted
3) arrive at an settlement with uncle
4) file consent terms then sell your share in property
is there any stay granted by court against sale of property ?
2) you will not be able to sell the property if stay has been granted
3) arrive at an settlement with uncle
4) file consent terms then sell your share in property
This kind of money lending is operated only on the muscle power there is no agreement you can state away denied amount but please remember that you will be liable for payment to the fertilizer companies where from you have taken the stock you need to negotiate the private lenders in case they agree for this 20 lacs and wind up any outstanding loan.
Legally nothing is possible as they don't have any e evidence of their payment
Hello,
if there is no written agreement and you have already paid more than the principle amount then you may stop the further payment but note that this will start and series of litigation and you will have to get ready for the same.
Regards
Send them a notice that your father has made the entire payment and nothing remains to be paid and as such no further EMI will be paid from your end.
They may threaten you but as soon as they do the same, you may go ahead and file a case against them for threatening you.
and they dont have nay prove of loan as such they will not be able to prove the same before any court.
Regards
You can contest the case and file police complaint if they are harassing you
You may go to police station and file a cheating/harassment complaint against the non-licensed financier. As per your wordings. the interest and the calculation is not acceptable. You can approach a lawyer asap to resolve this issue.
Dear client
The solution is that first you pay and clear the loan on of big lenders who are bigger goons and ask for a little time from other people it can be a good solution for you.
But if you can handle a little trouble then told the lenders that we are bankrupt and we cannot pay the loan and pay as much as possible from the money you have. As they cannot legally force you to pay the money because loans are not secured or by way of mortgage deed.
You cannot sell the property till the case is pending on the property.
If your father is unable to repay the loan amount then he may file an IP before the jurisdictional court.
However all his assets will be first adjusted towards the outstanding loan/debts to the debtors.
You may obtain loan from bank and clear all the external debts.
The IP case may be against your interest since the properties are more worth than the loan amount, hence decide judiciously.