hi all
i tried to borrow some money from relatives and friends with a promised return of 20% pa and they agreed. just want to clarify a few points:
1) is it legal to borrow money with a promise of high interest payment? (just in case people want to lend me millions [biggrin])2) some ppl want to put evrything in writing. do i need to engage a solicitor to do this? or maybe a Justice of Peace will do the job?
any feedback appreciated,
aoHi ao,
I do not think its illegal to offer high rate of return as long as you can pay the interest and principal. In fact I offer slightly better returns myself.
With respect to the documentation you could do both ways – you could complete a Statutory Declaration and get it signed by a JP or do a proper loan agreement through a solicitor.
Just out of curiosity – are you offering any security?
Good luck.cheers,
Sanjiv Gupta“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
A JP is just witnessing signatures. Which may not amount to much if your contract is fully of holes. (But you will be borrowing their money, so having a contract full of holes is their problem.)
A contract need not be in writing to be enforceable. But it is a good idea to avoid disputes later on. You will need to cover term, security, interest rates etc.
Terryw
Discover Home Loans
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
If you are offering good security, let me know the deals, my mates and I are always into lending money with good returns.
But solicitors are the only way to go, protect both parties with a contract and security documentation.
We never lend unsecured. NEVER!!!
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