I’ve lent ₹1 lakh to a buyer who’s taking a loan of ₹25 lakhs against my property, which he plans to buy in August. He’s promised to pay me ₹20 lakhs by then. Now, he claims I’ll get the full ₹25 lakhs directly in my account once the loan gets approved. But the loan is in his name. Is this arrangement legitimate or could it be a scam?

This arrangement appears suspicious. The buyer’s claim to directly pay you ₹25 lakhs from his loan, which is in his name, is legally problematic. It is highly likely that he is trying to deceive you, as you have no legal claim to the loan proceeds. You should insist on receiving the agreed upon ₹20 lakhs separately and independently of the loan.