2 Answers
Dear client
Firstly, charging 5% monthly interest (60% annually) is illegal under state Money Lenders Acts. As you’ve already paid ₹8,64,000 in interest over three years on a principal of ₹4,80,000, you have paid nearly double what you originally borrowed, giving you legal grounds to fight further demands.
Moreover, private lenders have no legal right to enter your home, threaten your family, or attempt forced recovery. Intimidation and trespass are serious criminal offenses under the Bharatiya Nyaya Sanhita. If they attempt to harass you at your residence, call the police helpline (112) immediately to lodge a complaint.
To resolve this, gather all bank statements, UPI receipts, and payment records proving your past transfers. Send them a legal notice stating that the debt is legally satisfied under the Usurious Loans Act and warn them against illegal recovery measures. Firmly standing on the fact that all future communication must occur strictly through legal channels.
I hope this answer helps, if you have any other query kindly do not hesitate to contact us. Thank you.
Dear Client,
Having to pay 5% interest every month (60% per year) is generally thought to be exorbitant and may also breach the Money Lenders Acts of individual states, which impose limits on the amount of interest that can be charged. Lenders are not allowed to use any coercion to recover the sum owed. If you receive a warning that someone will forcefully visit your house, you may report it to the police and file a complaint under the criminal intimidation law, Section 351 of the Bharatiya Nyaya Sanhita, 2023. You may also issue a legal notice to get some extra time to pay off your old debt in question without considering illegal interest on the sum. I hope this answer helps. If you have any further query kindly do not hesitate to contact us. Thank you