Stuck in 40 lakh loan @5% pm

[Akbar]

I'm 24, stuck in a vicious cycle of just paying interest. I'm paying 2 lakhs interest every month, and it's driving me mad. I have no capital left and can't get a bank loan or any investments. My money – about 8-10 lakhs – is with a friend, and I'm being forced to pay 5% interest on a 40 lakh loan or I'll be threatened. I don't know what to do.

I feel like a failure. No one's helping, so I'm posting here.

I lost money after a few bad trading months and my 17 lakh account got seized.

[Raghav]

5% per month works out to about 79.5% a year. Who on earth would agree to that?

Go to a reputable bank and apply for a personal loan to clear all your dues. You'll be paying them only 12-15% annually.

[Nakul]

I don't want to judge, but I can't help it.

[Imtiaz]

Off‑topic, but where did you spend the 40 lakh at your age?

[Mohan]

If you won't ask your parents, first retrieve the 8-10 lakhs from your friend, then sell your car to pay down some principal. Keep doing that until you can get a loan from a bank or any regulated lender at 15-20% per year – that's far lower than 5% per month.

[Vivek]

Brother, even the 8-10 lakhs won't do much. Paying 5% per month is insane. You shouldn't be trading with that mindset. I'm not sure if it's legal, so get a lawyer and consider moving elsewhere.

Edited: 40 lakh is not $50 K and 5% per month is not 60% per year. The only way out is to repay the whole amount as fast as you can – it will soon cross a crore.

Edit 2: Stop delaying and tell your parents. This isn't just ruining your life; it could wreck theirs too. I've seen wealthy families get destroyed because a child fell into a similar trap.

[Chiranjit]

Did you sign any agreement that states 5% per month? If not, go to the police and tell them the lenders are threatening you with that rate while you only have a verbal agreement for 11-12% per year. Even if you did sign, you can claim they forced you into it. Such exorbitant rates are illegal. Get a good lawyer's advice.

[Mukesh]

Default. Even if it were a legit loan, the interest rate is illegal and unenforceable. Don't ruin your life paying this.

Most advice here comes from moralistic middle‑class folks who think you must sacrifice everything. That's not the only way.

With such usurious terms, the only realistic option is to default.

[Ronit]

Consequences are coming...

No one can help because you don't want help. You're just looking for someone foolish enough to lend you again.

[Siddharth]

If the loan is from a bank, consider filing for bankruptcy and start fresh. If it's from loan sharks, think about moving to a new city and rebuilding your life. Pay back the principal when you're stable, but for now stay low-key.

[Aryan]

Wow. Borrow another 2 lakhs and start trading again. You think you're a genius and can't ask your parents for help.

Play stupid games, win stupid prizes.