First you have to register the finance business company. They can be registered in various forms, such as Microfinance companies, Nidhi companies, Non-banking finance companies (NBFC), Local Finance License etc.
Make good lender borrower agreement before lending the money. Take application forms from the borrower and execute agreements properly. Also execute a promissory note and execute a deposit of title deed agreement and hold the title deed and other documents realted to the property of the borrower.. If the borrower is making default, you may file case for getting realisation of money and attach the property of the debtor. Even after getting the decree, the borrowers is not settled the debt amount the file execution petition and sale the property through court procedure and realize the same.
If you are not start a finance business company you are unable to realse the same easily.
Who wish to take benefit of Indian laws and legal system they must act as per Indian laws .Normally you have no right to lend the huge amounts. You can lend money to relatives, close friends etc, but it should not be your business. One or two lending in a year and over years they have become 20-30 lending’s its fine, but you should not do them in too much frequencies and should not lend on to unknown or through brokers. Otherwise you could be in deep trouble.
According to the Indian Contract Act 1872, an agreement between two people which is accepted by both the parties and enforceable in the court is valid. The bank keeps the property as collateral security against the loan amount. And bank has power to collect the debt from the debtor by sale the property with the help of various laws.