I’m a 62-year-old resident of Visakhapatnam, Andhra Pradesh, facing an urgent need for ₹2 lakhs. I need to repay a debt to someone and am considering taking a loan from a local financier. The financier has offered a loan with an interest rate of ₹2 per something (unclear from context). However, they’ve asked for blank cheques and blank ₹100 non-judicial stamp papers as security. Is it safe to provide these documents? I’m worried about the risks involved. Any advice on how to proceed safely?

Apni Law
Apni Law
Law Forum › Category: Documentation › I’m a 62-year-old resident of Visakhapatnam, Andhra Pradesh, facing an urgent need for ₹2 lakhs. I need to repay a debt to someone and am considering taking a loan from a local financier. The financier has offered a loan with an interest rate of ₹2 per something (unclear from context). However, they’ve asked for blank cheques and blank ₹100 non-judicial stamp papers as security. Is it safe to provide these documents? I’m worried about the risks involved. Any advice on how to proceed safely?
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Apni Law Staff asked 4 months ago

I’m a 62-year-old resident of Visakhapatnam, Andhra Pradesh, facing an urgent need for ₹2 lakhs. I need to repay a debt to someone and am considering taking a loan from a local financier. The financier has offered a loan with an interest rate of ₹2 per something (unclear from context). However, they’ve asked for blank cheques and blank ₹100 non-judicial stamp papers as security. Is it safe to provide these documents? I’m worried about the risks involved. Any advice on how to proceed safely?

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Best Answer

Apni Law Staff answered 4 months ago

Providing blank cheques and stamp papers to a financier is extremely risky and could lead to misuse. Indian law doesn’t explicitly prohibit this practice, but it exposes you to the possibility of financial exploitation. Consider seeking loans from reputable institutions or exploring other options like family or friends before agreeing to such terms.

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