Interest rates for money lender in tamilnadu
vijayalakshmi
(Querist) 11 August 2017
This query is : Resolved
I have recently started a money lender business in Tamil Nadu with licence. I want to know about the what is the maximum rate of interest can I charge per month
Ms.Usha Kapoor
(Expert) 11 August 2017
According to Tamilnadu money lending Act 1957 lenders will've to charge not more than 12% interest from loanees or borrowers. Anything extra is considered exorbitant and illegal.3 2013 (HC)
A.Gunasekaran Vs. P.Velusamy
Court : Chennai
..... identical issue. the learned brother judge m.jayapaul j has in para 20 of the judgment in the firs.case held that both the tamil nadu money lenders act, 1957 and the tamil nadu prohibition of charging exorbitant interest act would not apply to money lenders.who advance loans on the basis of negotiable instruments exceeding rs.10,000/-. the same view was upheld by the division bench in the ..... extend to third thousand rupees. section 12 provides for 'application of provisions of tamil nadu money lenders act', and says subject to the provisions of this act, the provisions of the money lenders act, insofar as they are applicable to money lenders shall mutatis mutandis apply to a person referred to in section 3 of this act. 12.the combined reading of the sections 2(6).3, 4 and 12 ..... 2008 on the sole ground that as the interest chargeable at 24%pa is prohibited under section 3 of the tamil nadu prohibition of charging exorbitant interest act, 2003 (hereinafter shortly referred to as tamil nadu act 38/2003) r/w section 7 of the money lenders act 1957 and g.o.ms.no.406 co-opeation department dated 5.7.1979, it cannot be enforced in any ..... court of law. it is contended herein that the relevant provisions of law under section 138 of the negotiable instruments act can be
Ms.Usha Kapoor
(Expert) 11 August 2017
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vijayalakshmi
(Querist) 11 August 2017
Thank you mam, in this case how can I take action against my loan defaulters legally
Rajendra K Goyal
(Expert) 11 August 2017
Discuss with local lawyer and apply for money lending license.
You can not accept deposits from Public, it attract observing of RBI / other guidelines.
