Money lending licence
shekharshahane
(Querist) 07 February 2013
This query is : Resolved
Dear sir,
Pl.guide me for obtaing Money Lending Licence. What are the rules and formalities for the same.
Awating response
With reagrds
Shekhar Shahane
Raj Kumar Makkad
(Expert) 08 February 2013
You have not mentioned your State wherein you want such license even then the following are the general rules which are to be followed:
1. A registered Pvt. Ltd. company having proper MOA & AOA pertaining to business of borrowing and lending, should be compulsorily be registered with Registrar of Companies.
2. A Pvt. Ltd. company desirous of doing finance business, must mandatorily take Licence (Certificate) from Reserve Bank of India u/s 45 of the RBI Act. This is valid and applicable for whole of India.
3. However, apart from above, a further "money lending licence" is to be obtained from "each & every" State, where money lending business is proposed to be conducted. In Maharashtra, the dept of Cooperatives is entrusted for granting of such "money lending licence" .
4. Mandatory documents like MOA, AOA, Company Incorporation certificate, PAN card, S&E license and others are required to obtain licence & conduct business of finance.
