• Money lender loan Settlement

Hi team

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 3 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.
Sandeep Hegde
Advocate, Bangalore
387 Answers
101 Consultations
4.8 on 5.0
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.
Ashish Davessar
Advocate, Jaipur
19587 Answers
507 Consultations
5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
Ask a Lawyer

Criminal Lawyers

T Kalaiselvan
Advocate, Vellore
17427 Answers
165 Consultations
5.0 on 5.0
Krishna Kishore Ganguly
Advocate, Kolkata
13577 Answers
291 Consultations
5.0 on 5.0
Ashish Davessar
Advocate, Jaipur
19587 Answers
507 Consultations
5.0 on 5.0
Devajyoti Barman
Advocate, Kolkata
6901 Answers
78 Consultations
4.9 on 5.0
Nadeem Qureshi
Advocate, New Delhi
3812 Answers
150 Consultations
4.9 on 5.0
Shivendra Pratap Singh
Advocate, Lucknow
3146 Answers
47 Consultations
4.9 on 5.0
Rajgopalan Sripathi
Advocate, Hyderabad
971 Answers
69 Consultations
5.0 on 5.0
Ajay N S
Advocate, Ernakulam
2029 Answers
24 Consultations
5.0 on 5.0
Kiran N. Murthy
Advocate, Bangalore
823 Answers
58 Consultations
5.0 on 5.0
Thresiamma G. Mathew
Advocate, Mumbai
1359 Answers
96 Consultations
5.0 on 5.0