Money lending business in delhi

1.) Those who wanted to start a money lending business should have to apply for a money lender licence to carry on business of money lending.
In order to apply for the same the eligible person needs to apply with required documents to the respective deputy commissioner's designated to process the request.

2.) As per money lending act, interest on loans cannot be charged exorbitantly. The normal interest that shall be chargeable shall restrict to 24% pa.

3.) For this it is very important to understand that the amount of loan that one needs influences the type of money lender. Therefore, in cases of larger loans, one might need a combination of several lenders.

Regarding this matter some basic regulations of the Money Lending Rules in India state that —
(a) The accumulated exposure of a lender to all the borrowers across all the P2P platforms at a time shall be limited to Rs. 10 lakh.

(b) The exposure of a lender to the same borrower shall not exceed Rs. 50,000 across all the platforms of P2P.

(c) The loan maturity time cannot be more than 36 months.

(d) All fund transfers between lender and borrower and vice versa has to be via bank accounts and any mode of cash transactions are strictly prohibited.


Hope It Helps!

Regards,
Kevin M. Paul