Money lender loan Settlement
I had taken a loan of rs 1 Lakh from a private money lender 4 years back. As my financial position was worst. the rate of interest was 10% per month.
i have paid 10% interest every month till december 2013, later got it down to 5% per month since jan 2014.
Now i want to settle with him, is their any way i could pay him less than the principal amount taken? as iv paid a lot of interest to it..
most of the interest paid to him was through bank transfer.
Asked 4 years ago in Criminal Law from Bangalore, Karnataka
Private money lending not legal if lender has not taken license. If he is unlicensed money lender, refuse to pay interest and then negotiate with him to settle the matter amicably for lesser amount as one time settlement.
The only way you can pay him below the principal amount taken is by convincing him in this regard. You are legally liable to pay him the principal amount lent and the interest settled.
If he is a private a money lender then he cannot advance money without a money lending license.