• Loan to a friend


I own a T permit car but I want to sell it off and shut my business with Ola.

A friend of mine is going to buy it for INR 410,000 however he is in financial crisis so cant pay me right now. In order to help him what I have agreed with him is - 
1. I will first transfer the car on his name ( He has Gumasta already )
2. He will then mortgage that car with a small co-operative bank ( bank has approved in principle ) and get a loan of 300,000 which he will pay me immediately.
3. rest 110,000 will be paid by him to me in 11 installments of 10,000 each.

How & where can I make papers to capture this agreement and what precaution should I take
Asked 2 years ago in Business Law from Greater Mumbai, Maharashtra
1) it can be done by exchange of letters 

2) let your friend request you for loan of Rs 4  lakhs 

3) you can agree to give him loan of Rs 4?lakhs ad transfer car in his name 

4) it should be agreed friend would have pvt Rs 3 lakhs received on mortgage of car 

5) issue post dated cheques for balance Rs 1 lakh 
Ajay Sethi
Advocate, Mumbai
45638 Answers
2681 Consultations

5.0 on 5.0

Execute a flawless agreement with him and take post dated cheques of the amount. If you have his post dated cheques and he does not pay the promised amount then you may present the cheques to the bank and then file a criminal complaint of cheque bounce if the cheques bounce.
Ashish Davessar
Advocate, Jaipur
22977 Answers
634 Consultations

5.0 on 5.0

You can make a sale agreement on the same line agreeing to the conditions which are mutually agreed by both.
In addition you may obtain 10 post dated cheques which may have a mention in the sale agreement which shall serve as an additional security for the amount due to you.
T Kalaiselvan
Advocate, Vellore
35809 Answers
390 Consultations

5.0 on 5.0

Hi, You can entered into agreement with him that he will agreed to pay sum of Rupees 110,000/- in eleven equal installments and also obtain two or three post dated cheques for the same amount in order to get secure payment.
Pradeep Bharathipura
Advocate, Bangalore
4551 Answers
203 Consultations

4.5 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