Esteemed members,
I am an individual and I had lent some money to one of my friend at a rate of 3% per month recently. The high rate has been opted because, he was in need of money on a emergency basis and to serve his need I have borrowed from another person at a rate of 2.5% from one of my friend, keeping 0.5% as my margin.
I would like to know whether charging an abnormal interest rate of 3% per month(i.e. 36% per annum) would amount to any violations of any of the money lending acts or any other acts or constitution etc.
I hope Money lending act is not applicable to me as I am not a money lender and also I am not lending money on a regular basis and this was only one of a rare lending transaction by me.
Appreciate if you quote relevant provisions of law for better understanding.
