Legal Question in Credit and Debt Law in India

My concern is that my sister has been receiving threats from one of the money lender who had lent her 1.50 lacs on basis of interest at 20%. However my sister has not been making them any payments since she's unemployed for many years. My sister do want to payoff the amount but for a low interest rate but the money lender is refusing to lower the rates and threatening her time and again that they will evict all of us from our home.

What is the legal procedure to fight against these private money lenders? My second question is Are they allowed to charge such a high interest rate as per the registered license they hold?

Please help me with some tips, any help would be highly appreciated.


Asked on 12/13/14, 3:57 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

13.12.2014

Dear Sir / Madam,

You should approach the money lender for a reasonable settlement of the outstanding amount and pay it off. Private money lenders rate of interest goes up to 36% depending on the risk involved in lending the sum of money.

Regards,

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Answered on 12/13/14, 4:53 am


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