Tips to File Legal Notice Format for Non Payment of Loan in India

legal notice for non payment of loan

Offering loans to people who are seeking and collecting them back on time is a challenging task. Sometimes, the borrower cannot repay the due amount because of certain financial struggles.

Understanding the situation, you need to offer them enough time and then remind them about the payment after some weeks or months.

But what if the borrower doesn’t try to repay the amount even after giving them time and multiple notices, how do you recover the loan?

One way to do this is to send a legal notice to the opposite party against the non-payment of the loan.

Confused about the term “legal notice”? Or are you hearing about this for the first time and thinking if a legal notice is necessary?

Fret not, in this blog, you’ll know what is a legal notice, why it is important, and the steps to file one easily.

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What is a Legal Notice?

A legal notice is a formal document that a person or an institution sends to the opposite party warning them to address the situation immediately before they proceed to file a lawsuit. The person who sends the legal notice is called the “Sender” and the person to whom the legal notice is sent is called the “Addressee”.

In India, legal notice is used in various situations; consumer complaints against a brand, property disputes, employer and employee issues, divorce and child custody issues, and in cases of default of personal loans.

In the case of personal loans, legal notice is sent from the lender’s side to the borrower giving a final chance to complete the repayment. If not, the lender would file a lawsuit against the borrower to retrieve the money.

FaadhAfter Sending a Legal Notice, you Can Expect Two Responses from the Opposite Party:

1. The borrower might take the necessary steps to negotiate and repay the amount as mentioned in the formal document
2. Or else if the borrower or opposite party ignores the legal notice, you can drag the problem to the courtroom

Also, Read: I Need ₹5000 Rupees Loan Urgently: Quick Guide

Importance of a Legal Notice for Non-Payment of Loan

Here are 3 reasons why it’s important to send a formal notice before opting for legal action.

1. A Final Opportunity

Before taking any legal action, try giving one last chance to the borrower to settle the payment with penalty charges. That is, by sending the legal notice about the actions that would be taken if the borrower doesn’t proceed to pay the loan. If the borrower repays, the problem is sorted easily compared to legal steps which involve time, energy, and the help of a lawyer.

2. Serves as an Evidence

As the legal notice includes the grievances and necessary actions taken from your side to collect the payment, this would serve as proof. In case of future legal actions, you can submit a copy of this legal notice as evidence in the courtroom.

3. Informing about your Next Action

Before you take that step to proceed legally, you need to inform the opposite party about this legal action.

Why is this step necessary?

As the legal process demands ample amounts of time and money from both parties, the borrower must be prepared to face these inconveniences.

When Filing a Legal Notice for Non-Payment of the Loans is Mandatory?

Let’s say, you have tried almost tried every attempt to get back the money, such as,

  • Notifications on repayment dates
  • Contacting them in person and asking about their situations
  • Giving the opposite party enough time to repay the loan

Nothing helped in your favor. You’re worried if you’d be able to get your money back and are looking to get help from the court.

In such cases, it is mandatory to send a legal notice before you take legal action against the non-payment of the loan.

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Steps to File a Legal Notice for Non-Payment of the Loans

1. Consult a Lawyer

Let’s say, you’re thinking of filing a legal notice against the non-payment of the loan.

Should you take help or file a legal notice by yourself? Of course, you can file a notice without any help.

But, we recommend filing with the help of a lawyer is much more effective. As the notice coming from a lawyer is taken seriously compared to sending it by yourself. Plus, the lawyer possesses the required knowledge of the laws that can be utilized in your case of non-payment of the loan.

2. Get Ready with the Information

Give the necessary details needed for documenting your grievance to the lawyer. The steps you have taken to collect the repayment, the loan agreement, and the borrower’s responses so that the lawyer can create a clear legal notice.

Adding to that, submit the opposite party’s information such as name, address, email address, and mobile number to the lawyer.

Documents Required to Send a Legal Notice For Repayment Of Loan:

When drafting a legal notice for the recovery of a friendly loan, the following documents should be carefully examined:

  • An affidavit confirming the amount of money lent or owed to you
  • The agreement detailing the sum your friend has agreed to repay you
  • Any evidence supporting the claim that money is owed to you

3. Draft the Document

As you have given the information, your lawyer would draft the document with details of your grievance, expectations of resolving the problem, and potential outcomes that the borrower can expect if the legal notice is taken casually.

Once it is completed from the lawyer’s side, get the document and double-check the following information.

  • Sender’s and addressee’s name, physical address, email address, and mobile number
  • A separate paragraph, mentioning all your grievances and steps that you carried out in the previous months
  • Your demands and requirements from the opposite party aka borrower. For instance, paying X amount within a time frame
  • Results and actions that would be carried out when the borrower fails to act according to the document

4. Send the Legal Notice

In India, the legal notice is sent commonly through a registered post or courier. You can follow the same, or deliver the notice in person.

Or else, you can try the method of sending it electronically through mail. Remember to keep a copy of the notice with yourself.

5. Wait for the Response

After sending the notice, wait for the borrower’s response. If the borrower isn’t serious about the notice and doesn’t try to repay, take the necessary steps to handle it in court.

What Details Should a Legal Notice Cover For Non-Repayment Of Loan?

The notice should contain all pertinent details regarding the non-payment of the loan, including the recipient’s name and address. Any person is required to issue a legal notice with the support of an attorney. If the loan remains unpaid, the notice must outline the reasons for potential legal actions. It should also include all contact information associated with the matter.

The below-mentioned points would help you understand better what details should be there on a legal notice cover the non-repayment of a loan:

  • The legal notice should be written on the advocate’s letterhead and include clear and precise information.
  • It must list the addresses and contact details of the advocate.
  • The notice should state the issuance date along with the name, address, and contact details of the recipient.
  • As the notice is sent on behalf of the client, it should also include the client’s name and details.
  • The notice should clearly describe how the recipient’s actions or inactions have violated your rights and specify what you expect from them, including a clear deadline for compliance.
  • Both the advocate and the sender must sign the notice, including the date of signing.

Also, Read: What are Processing fees & Charges on Personal Loan?

Legal Notice Format for Non-Payment of Loan

The legal notice format for non-payment of the loan varies depending on the lawyer. But it should contain,

  • Necessary details about the sender and recipient
  • Date, place, and the object of sending a legal notice
  • Grievances in a crisp paragraph
  • Loan details such as amount yet to be paid, interest rate with time duration
  • Action that would be taken if the requirements aren’t met by the borrower

Following is the sample format of legal notice for non-payment of loan:

Legal Notice

Ref. No……………. Dated ____, __________












Dear Sir,



Pursuant to the instructions from and on behalf of my client ___________________, through its _____________, I do hereby serve you with the following Legal Notice: –



1– That my client is a ___________ firm/individual under the name and style of M/s ______________________.


2 – That inspite of acknowledging the liability of payment of the principal balance of Rs. _________/- you have been miserably failed to make payment of the said amount due to my client from you deliberately with malafide intent; hence you are liable to pay the said principal balance amount of Rs. __________/- along with interest @ __% p.a. from the date of due till actual realization of the said sum as is generally and customarily prevailing in the trade usages, which comes to Rs. __________/-



3—Thus, you are liable to pay the total amount of Rs. ________/—to my above-named client, and my above-named client is entitled to recover the same from you.



I, therefore, through this Notice, finally call upon you to pay to my client Rs. __________/-. along with future interest @ __ % p.a. from the date of notice till actual realization of the said amount, together with notice fee of Rs. ____/- to my client either in cash or by demand draft or Cheque whichever mode suits you better, within clear 30 days from the date of receipt of this notice, failing which my client has given me clear instructions to file civil as well as criminal lawsuit for recovery and other Miscellaneous proceedings against you in the competent court of law and in that event you shall be fully responsible for the same.



A copy of this Notice has been preserved in my office for record and future course of action.








Disclaimer: This document is provided as a sample format of a legal notice for informational purposes only. It is not intended as a substitute for professional legal or financial advice. Before sending this notice or taking any legal action based on its contents, please consult with a qualified advocate or your financial advisor to ensure that it is appropriately tailored to your specific circumstances and complies with local laws and regulations.

A legal Notice to Your Borrower Can Help with Loan Re-Payment

Collecting money from the borrower can seem like a daunting task, especially when the borrower doesn’t care about multiple reminders and notifications.

But that doesn’t mean you can’t get back your money at all. Sending a legal notice warns the borrower to repay the amount within the mentioned duration of time.

In most cases, the borrower would repay the loan amount to avoid the inconvenience of dealing with it in the courtroom.

Also, Read: I Need a 3000 Rupees Loan Urgently


1. What is a Legal Notice?

A legal notice is a formal document that one party sends against the other one urging them to resolve the issue conveniently. Additionally, it informs and warns the opposite party about the legal action.

2. Is it Mandatory to Send a Legal Notice Against the Non-Payment of the Loan?

It’s better to send a legal notice before taking it to court as it helps to recover the money easily.

3. Should I Reach out to a Lawyer?

Taking a lawyer’s help would help you as they’re aware of the laws and you can complete the process quickly.

4. What Should I Include in the Legal Notice for Non-Payment of the Loan?

Legal notice should include the recipient’s details, loan amount, interest rate, amount paid, outstanding amount, and time duration.

5. What to do after sending a Legal Notice?

Wait for the borrower’s response, most probably the borrower would consider repaying the amount as dealing with it legally is even tougher.

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