Can I recover an unpaid loan through the court on the strength of a written agreement?

Yes. A signed loan agreement or promissory note is a valid document under the Contract Act, 1872, and forms the primary evidence in a civil suit for recovery of money. A digital agreement created and OTP-signed on ChuktiQ is admissible in the same way (Sections 6 and 7 of the ICT Act, 2006). Bangladesh's statute of limitations for a money-recovery suit is short (a fixed number of years running from the date the loan became payable), so do not wait — confirm the current limitation period with a lawyer before filing to make sure you are still in time.

Is charging interest on a private loan legal?

Charging interest is legal so long as the rate is agreed in writing at the time of the loan and is not usurious. Bangladeshi courts have long-standing powers to reopen and reduce interest that is 'excessive' relative to prevailing bank lending rates, and the specific statutory ceiling has been amended over time — confirm the current cap with a lawyer before writing a particular figure into your loan document.

What if the borrower simply won't sign the money-receipt?

Never hand over money without a receipt. If the borrower refuses to sign, the safest course is not to lend at all. If money was already handed over, contemporaneous evidence — SMS or bKash / Nagad transfer records, WhatsApp confirmations, a witness present at the transaction — can partially substitute; but a signed, dated receipt / agreement is dramatically stronger evidence and takes about two minutes to create on ChuktiQ.

Loan, Money & Financial

Money changes hands between friends, family members, small business partners, and informal lenders every day in Bangladesh — often without any written record. That informality is exactly what causes bitter disputes months later over whether the money was a loan or a gift, what the interest was, and when it should be repaid. A short written loan / money-receipt agreement — signed by both parties with at least one witness — turns a fuzzy oral understanding into a legally enforceable record. It should state the exact amount (in figures and in words), whether interest applies and at what rate, the repayment schedule (lump-sum or installment), any collateral, and what happens on default.

Stamp & registrationStamp duty: a simple loan / promissory note between individuals typically runs on a Tk. 300 non-judicial stamp; a mortgage backed by immovable property needs a registered mortgage deed under the Registration Act. Interest rates on private loans are also constrained by statute — grossly usurious rates can be reduced or set aside by a court. Confirm the current statutory ceiling and enforcement mechanism with a lawyer before writing a specific rate into any loan document.

Contract types in this category

Frequently asked questions

Can I recover an unpaid loan through the court on the strength of a written agreement?: Yes. A signed loan agreement or promissory note is a valid document under the Contract Act, 1872, and forms the primary evidence in a civil suit for recovery of money. A digital agreement created and OTP-signed on ChuktiQ is admissible in the same way (Sections 6 and 7 of the ICT Act, 2006). Bangladesh's statute of limitations for a money-recovery suit is short (a fixed number of years running from the date the loan became payable), so do not wait — confirm the current limitation period with a lawyer before filing to make sure you are still in time.
Is charging interest on a private loan legal?: Charging interest is legal so long as the rate is agreed in writing at the time of the loan and is not usurious. Bangladeshi courts have long-standing powers to reopen and reduce interest that is 'excessive' relative to prevailing bank lending rates, and the specific statutory ceiling has been amended over time — confirm the current cap with a lawyer before writing a particular figure into your loan document.
What if the borrower simply won't sign the money-receipt?: Never hand over money without a receipt. If the borrower refuses to sign, the safest course is not to lend at all. If money was already handed over, contemporaneous evidence — SMS or bKash / Nagad transfer records, WhatsApp confirmations, a witness present at the transaction — can partially substitute; but a signed, dated receipt / agreement is dramatically stronger evidence and takes about two minutes to create on ChuktiQ.

Loan, Money & Financial

Frequently asked questions

Can I recover an unpaid loan through the court on the strength of a written agreement?: Yes. A signed loan agreement or promissory note is a valid document under the Contract Act, 1872, and forms the primary evidence in a civil suit for recovery of money. A digital agreement created and OTP-signed on ChuktiQ is admissible in the same way (Sections 6 and 7 of the ICT Act, 2006). Bangladesh's statute of limitations for a money-recovery suit is short (a fixed number of years running from the date the loan became payable), so do not wait — confirm the current limitation period with a lawyer before filing to make sure you are still in time.
Is charging interest on a private loan legal?: Charging interest is legal so long as the rate is agreed in writing at the time of the loan and is not usurious. Bangladeshi courts have long-standing powers to reopen and reduce interest that is 'excessive' relative to prevailing bank lending rates, and the specific statutory ceiling has been amended over time — confirm the current cap with a lawyer before writing a particular figure into your loan document.
What if the borrower simply won't sign the money-receipt?: Never hand over money without a receipt. If the borrower refuses to sign, the safest course is not to lend at all. If money was already handed over, contemporaneous evidence — SMS or bKash / Nagad transfer records, WhatsApp confirmations, a witness present at the transaction — can partially substitute; but a signed, dated receipt / agreement is dramatically stronger evidence and takes about two minutes to create on ChuktiQ.