jeyakumar (lecturer) 03 April 2020
Archit Uniyal 03 April 2020
HI,
A money lender is someone who lends small amounts of money at a higher rate of interest. n India. In every state in India, Moneylenders are governed by their own separate Money Lenders Act. It is mandatory for every money lender to have a license.
The procedure for obtaining a money lender license is simple: Money lender license is usually granted by the Revenue Department within 3 to 4 months from the date of submission of the application form. Once the application is received, it is valid for one year.
These are a few factors that have to be taken into consideration while issuing/renewal/endorsement of a license:
The following documents are required to obtain the money lending license.
You should also take note that the RBI recently passed a few guidelines regarding the lending platforms. RBI has proposed registering P2P lending platforms as non-banking financial companies (NBFCs). The guidelines will bring awareness about the sector and more individual lenders will come on board.
Few of the guidelines are
The Interest to be calculated depends on the terms on which you lent the money in the first place.
Lending money in a private money lending business is a risky thing and there are no remedies available which ensures the return on money other than the threat of filing a case against that person
I hope this solves your query.
Regards,
Archit.