Can a Loan Agreement Be Oral or Must It Be in Writing?

 Can a Loan Agreement Be Oral or Must It Be in Writing?” 🤝🗣️📃

Another classic question from clients who love “verbal trust”:
“I gave money on loan... no agreement, just mutual understanding. Will that hold up in court?”
(Also heard: “Sir, dosti mein likhne ki kya zarurat thi?” 😅)

✅ Answer: Technically YES, but Practically... You’re on Thin Ice! 🧊⚖️

An oral loan agreement is valid under Indian Contract Act, but proving it in court is as difficult as finding an honest politician on a debate show! 🎙️😂

#LoanAgreementIndia #OralContractIndia #ContractLawIndia #LegalDocumentation #MoneyLendingDisputes #MutualAgreementVsWrittenAgreement

✨ Why Written Loan Agreements Are Better Than Verbal Promises:

• Establishes clear terms – amount, interest, repayment schedule

• Prevents disputes on repayment timeline or denial of loan itself

• Acts as strong legal evidence in case of default

• Helps in filing money recovery suits or initiating legal action

#MoneyRecoveryIndia #DebtRecoveryLaws #LoanDisputeResolution #WrittenContractsMatter #LegalProofOfLoan #SafeLendingPractices

💡 Key Components of a Good Loan Agreement: ✔️ Names & Signatures of Parties
✔️ Principal Amount & Interest Rate
✔️ Repayment Terms
✔️ Default Clause
✔️ Witness Signature or Notarisation

#LoanContractDrafting #MoneyLendingIndia #PersonalLoanAgreement #LegalRecoverySupport #ContractEssentialsIndia

⚠️ Pro Tip: “Trust is great… but trust with a signature is even better! ✍️💼”

😂 An oral loan is like a handshake deal at a wedding buffet — tasty till it gets messy later! 🍲🤝

📣 Don’t risk your hard-earned money on verbal promises.
Let LEXIS AND COMPANY draft a bulletproof loan agreement and help with legal recovery in case of default.

📞 Call: +91-9051112233
🌐 Website: https://www.lexcliq.com