What legal remedies exist against private loan recovery threats?
One of my friends lent me ₹3 lakh in 2020 at an interest rate of ₹5,000 per month. There was no written agreement, bond, promissory note, or cheque at the time of the loan. I paid the monthly interest regularly for about five years. However, I have now stopped paying interest, and my friend is demanding repayment of the entire principal amount of ₹3 lakh. I am currently unable to repay the amount, and he is threatening to file a police complaint against me. The loan amount was transferred through PhonePe, and all interest payments were also made through PhonePe. My friend is not a licensed moneylender. What legal options do I have in this situation?
Since the money was transferred through banking channels and you have been paying interest for several years, the lender may pursue civil recovery of the principal amount. However, mere non-payment of a private loan does not automatically amount to a criminal offence. Keep all PhonePe records and payment proofs safely. If threats or harassment continue, you may file a police complaint. Do not sign any fresh documents or acknowledgments without legal advice. For further legal assiatance contact us on our helpline number.
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