- This topic has 6 replies, 3 voices, and was last updated 1 year, 5 months ago by
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UHello,
My father borrowed ₹12 lakh from a friend 5 years ago without any formal agreement. The lender charged ₹25,000 per month as interest, which we have been paying consistently for 5 years. Over this period, we’ve paid a total of ₹15 lakh as interest. Now, the lender is demanding the original ₹12 lakh principal amount as well.Some key points:
1. There is no written agreement or promissory note for the loan.
2. The lender may have WhatsApp messages or call records regarding the loan
3. The ₹25,000/month translates to an annual interest rate of 25%, which seems excessively high under the Usurious Loans Act, 1918.
My Questions:
1. Can we argue that the ₹15 lakh already paid covers both the principal and reasonable interest?
2. If the lender files a case in court, how much would we likely be required to pay?
3. Does the Usurious Loans Act or any other law apply to cap the interest rate in this case?
4. What legal actions can we take to protect ourselves and potentially avoid paying more?
Any advice on how to proceed or what legal steps we should take would be greatly appreciated.
Thanks in advance!
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UIt is high but that should’ve been discussed before taking the loan no?
Had a similar situation here where my father agreed to unconditionally pay 10k/month for as long as he kept the money (10L) and repay the principal in one shot, I used to think that was too much💀
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CMate that’s an extremely good deal. 12% interest for an unsecured loan. Barely any bank would give you that sort of deal.
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UYeah just felt strange to _me_ since 2 other close friends had also lent some amounts without any interest
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CThese bank charge upto 5% processing fees and make money in other ways. I doubt you are gonna be giving any such fees to friends.
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