1. If you have the capacity to sustain the loss in case he refuses or fails to return you the said amount, then only you venture in to this project. It is not run easily,
2. Moreover, you can not take interest more than the RBI prescribed rate & for lending money you shall have to take license as per the Act which you do not have,
3. If you still want to lend the said amount, calculate the interest amount upto the period he has planned to take the loan say upto 1.7.2015 i.e. Rs.2 Lakhs + Rs.72,000/- being 36% yearly interest for one year and take a MOU signed on Rs.100/- stamp paper duly notarised for the total amount of Rs.2,72,000/- shown as taken as loan but pay him Rs.2 lakhs through cheque. Take 5 Money Receipts for notional payment of Rs.72,000/- in cash in 5 equal minstalments of different dates,
4. Even after this securede measures, the repayment and recovery through due process of law can not be guaranteed.