maximum rate of interest by financial insti.....
dipendra
(Querist) 06 October 2009
This query is : Resolved
SIR, I LIKE TO KNOW THAT WHAT IS THE MAXIMUM RATE OF INTEREST THAT A PRIVATE FINANCIAL INSTITUTION CAN CHARGE FOR A PERSONAL LOAN.SIR, IS THERE ANY LAW STATING THE MAXIMUM RATE OF INTEREST TO BE CHARGED BY PRIVATE FINANCIAL INSTITUTION ON PERSONAL LOAN- DIPENDRA KUMAR
adv. rajeev ( rajoo )
(Expert) 07 October 2009
I think it is 18% I am not sure. Private financial instution follows the Money lending act.
Raj Kumar Makkad
(Expert) 07 October 2009
Each and every financial institution is issued a license by RBI and it has to work as per Money Laundering Act. Better visit the site of the particular site.
DR.P.L.NAWALKHA
(Expert) 07 October 2009
RBI SHOULD EXPLICITLY CLEAR THIS MIST WITH WIDE PUBLICITY.IT SHOULD BE PAYABLE BANK INTERST PLUS INCREMENT DUE TO ADMINSTRATIVE EXPENDITURE( NOT MORE THAN 2.5%) PLUS 1%PENALTY.
Sachin Bhatia
(Expert) 07 October 2009
Master Circular Issued by R.B.I. DBOD.No.Dir.BC.6/13.03.00/2007-08 dated July 2, 2007 consolidating instructions / guidelines issued to banks
2.4. Freedom to fix Lending Rates
2.4.1. Banks are free to determine the rates of interest without reference to BPLR and regardless of the size in respect of the following loans:
i. Loans for purchase of consumer durables;
ii. Loans to individuals against shares and debentures / bonds;
iii. Other non-priority sector personal loans including credit card dues;
iv. Advances / overdrafts against domestic / NRE / FCNR (B) deposits with the bank, provided that the deposit/s stands / stand either in the name(s) of the borrower himself / borrowers themselves, or in the names of the borrower jointly with another person;
v. Finance granted to intermediary agencies including housing finance intermediary agencies (list at Annex 2) for on-lending to ultimate beneficiaries and agencies providing input support.;
vi. Discounting of Bills;
vii. Loans / Advances / Cash Credit / Overdrafts against commodities subject to Selective Credit Control;
viii. To a co-operative bank or to any other banking institution;
ix. To its own employees;
x. Loans covered by refinance schemes of term lending institutions
J K Agrawal
(Expert) 10 October 2009
Thanks to mr sachin.
I do not understand that why one gives an answer when he is not sure about it. Is it necessary to answer each question ? instead to answer a question it is better to learn from others answers.
Mr Rajkumar pl go through Money Laundering Act for once only.
Sarvesh Kumar Sharma Advocate
(Expert) 07 October 2009
