A person has given me a loan of Rs 500,000 to buy a plot of land worth Rs 1,500,000 for my personal use. The time to return this loan was not specified but it was understood to be as soon as I get the required money. However, after purchasing the land, I sold two portions of the land thus making a net profit of 1,000,000 over a period of 2 years. I would like to to know :
1. Whether it will be permissible to give him back his 500, 000. together with a share of the profit according to the proportion of money he has lent to me. Will this extra amount be counted as interest money.
2. Whether the lender has a legal right to a share in the profit made by me given that his money has been with me for a period of more than 2 years.
1. Whether it will be permissible to give him back his 500, 000. together with a share of the profit according to the proportion of money he has lent to me. Will this extra amount be counted as interest money.
2. Whether the lender has a legal right to a share in the profit made by me given that his money has been with me for a period of more than 2 years.
We are not aware of any such Banks.
You didn’t specify why he gave you the money, whether as a gift, debt, or you just told him you put in your house when you bought it. the answer will be dependent on the specification of the one of the three cases.
From your questions we think that he lend you the money and in this case you just have to return money and he wont share the profit with you. But if you like to give something on your own then it’s fine. Interest is when the other party puts it as a condition. But the indebted can give to the debtor when returning the debt from himself.
You didn’t specify why he gave you the money, whether as a gift, debt, or you just told him you put in your house when you bought it. the answer will be dependent on the specification of the one of the three cases.
From your questions we think that he lend you the money and in this case you just have to return money and he wont share the profit with you. But if you like to give something on your own then it’s fine. Interest is when the other party puts it as a condition. But the indebted can give to the debtor when returning the debt from himself.
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