Financing vehicles

navin (Querist) 13 November 2014 This query is : Resolved
i am holding a moneylending license in karnataka.my query is people leave (vehicle possesion)there bikes & take loans from me,few days back the registrar of money lending officer told that lending money by pledging vehicles doesnt come under money lending act.please let me know what license to be taken to pledge the vehicle with us where vehicle possesion is with us so that no future hurdles come in future.

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Devajyoti Barman (Expert) 13 November 2014
Yes, they are right.
For this need License akin to that of NBFC.

navin (Querist) 13 November 2014
my buisness is going well should i dicontinue ?as nbfc require 2 cr turnover.......any alternative [pls suggest sir

Advocate Ravinder (Expert) 13 November 2014
I agree with D.Barman.

Rajendra K Goyal (Expert) 14 November 2014
May continue without pledging the vehicles stc. under the present license.

ajay sethi (Expert) 14 November 2014
continue money lending business dont take collateral security of vehicles

Devajyoti Barman (Expert) 14 November 2014
Apply in RBI if you want business of loan for vehicles.

T. Kalaiselvan, Advocate (Expert) 16 November 2014
I agree with the experts opinion that you can continue with money lending business but adhere to the rules as envisaged in respect of loans for vehicles.

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