I've Lent 2Lakhs 15 thousands on 2% interest for 2 months on 17th November 2024..on Trust..and no agreement done.but just transactions and messages on WhatsApp Although the borrower draws a stable income. Rs 30 k per month..but still unable to pay ..so far till date he paid just 11,000... On 2oth May 2025.. I visited His house personaly and got written from him..that what he owes to me'..so he wrote that he would repay my Principal amount with interest by May 2026..but I have a doubt that he would keep up his promise..as he always tries to dodge or plays trick...so i told him that im going to file a suit against him. .but the borrower says filing suit Will cause trouble to Both of Us..as it is illegal to give money on interest

Based on the information provided, it seems that you have an informal arrangement with the borrower wherein you lent Rs 2,15,000 at a 2% interest rate for 2 months starting from 17th November 2024. Despite the borrower having a stable income of Rs 30,000 per month, he has only paid Rs 11,000 till date and has agreed in writing to repay the principal amount with interest by May 2026.

In this scenario, while there was no formal agreement signed, the transaction details and WhatsApp messages can serve as evidence of the loan arrangement between you and the borrower. As per Indian law, a loan agreement does not necessarily have to be in writing and can be proven through oral agreements and conduct of the parties.

Regarding the borrower's concern about it being illegal to lend money on interest, it is important to note that the legality of the interest rate charged may vary based on the provisions of the Indian Contract Act, the Usurious Loans Act, and other relevant laws. In this case, the interest rate of 2% per month could potentially be deemed as excessive if it is calculated on a monthly basis. It is advisable to consult with a legal expert to assess the legality of the interest rate charged in this context.

If the borrower fails to repay the loan as per the agreed terms, you have the option to initiate legal action to recover the outstanding amount. Filing a suit in court for recovery of the loan amount is a legal recourse available to you as a lender. While the borrower may try to dissuade you from taking legal action, pursuing a legal remedy through the appropriate channels is your right as a creditor.

I recommend consulting with a lawyer specializing in civil matters to evaluate the merits of your case, assess the legality of the interest rate charged, and guide you through the process of initiating a recovery suit against the borrower if needed. A legal professional can provide tailored advice based on the specific details of your case and help you navigate the legal complexities involved in debt recovery proceedings.