• Can we sell furniture goods to customers on EMI basis

    1.) Can we sell  furniture goods to the customers on emi basis.
    2.) What type of government permissions we need for this.
    3.) Which type of documentations requires for customer signs.
    4.) Can we earn interest on this without money lending license, 
        We need this for our business expansion.
Asked 3 years ago in Business Law from Ambala, Haryana
1. Yes why not. As long as the terms and conditions of the sale are lawful it is open to you to sell them on emi basis.

2. No govt permission is required.

3. There should be an agreement signed with the customer wherein he will undertake to pay the EMIs on the fixed dates.

4. You can certainly charge interest without seeking a money lending licence as sale of furniture is not lending of money.
Ashish Davessar
Advocate, Jaipur
23120 Answers
639 Consultations

5.0 on 5.0

1)you must have licence under shop s and establishment Act , take service tax , VAT registration 

2) you can sell furniture to customer on EMI basis  but you have to enter into agreement with customer in this regard . ask customer to furnish his identity proof , PAN Card , residence proof , salary slip etc

3) customer should agree that in the event he fails to pay installment on time interest would be charged at 18%pa 

4) take post dated cheques from customer 

5) it should also be provided that you can in the event of default have right to regain possession of the furniture and sell the same and recover shortfall from customer 

6) contact a local lawyer
Ajay Sethi
Advocate, Mumbai
46704 Answers
2763 Consultations

5.0 on 5.0

Yes the productscan be sold on EMI  basis too.
You can formulate the terms and conditions for payment through EMIs
You do not require any separate money lending licence for such sale transaction, in fact it is not a revenue out of money lending business. 
As per as the documentations is concerned, all those reliable and authentic document s which can vouch for the safe return of investment can be trusted upon.
T Kalaiselvan
Advocate, Vellore
36859 Answers
403 Consultations

5.0 on 5.0

1. Yes
2. Trade license and vat registration.
3. signature on a delivery memo and invoice.
4. No, you can not.
Devajyoti Barman
Advocate, Kolkata
13133 Answers
174 Consultations

5.0 on 5.0

1. You can sell furniture made by you by collecting payments in installments,

2. No additional Govt permission is required for the said act of selling through EMIs,

3. You can get a printed agreement executed by the buyer and attach it with a Rs.10/- stamp paper signed by both of you,

4. You can not run a money lending business without having the license. However, you can add the interest component on the total price and  fix the EMI amount to be paid by the buyer without taking any govt. permission.
Krishna Kishore Ganguly
Advocate, Kolkata
18749 Answers
452 Consultations

5.0 on 5.0

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