Maharashtra money lenders act

Querist : Anonymous (Querist) 23 June 2019 This query is : Resolved
Hi Everybody,
I am a Regsitered Money Lender LiCense Holder in Mahasrashtr State My Q is as follwos.

Q1. We are providing Loans to the Borrowers of two types
a. For Month(CD)
b. For 100 Days(TBD)

We are ColleCting the Interest on the Loan, in AdvanCe i.e on the Day the whiCh Loan is granted in both the above Cases.
i.e for one Month and for 100Days Interest in AdvanCe

So my Question is whether ColleCting Interest in AdvanCe i.e on the Day whiCh Loan is granted is Against the Law or is there any Contravention of Money Lender Law.

Please Guide

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kavksatyanarayana (Expert) 23 June 2019
Dear querist, to my best, the Government shall fix the interest rates from time to time for the secured and unsecured loans and you shall not collect more than that.

Dr J C Vashista (Expert) 24 June 2019
For any commercial queries you should consult a local prudent lawyer for proper professional analyses and guidance.

R.K Nanda (Expert) 24 June 2019
contact local lawyer for ur commercial query.

P. Venu (Expert) 06 July 2019
The practice is not lawful - it amounts to collection of higher interest through the backdoor.

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