Legal requirements

Do registrat under the bombay money laundering Act.

just wanted to understand, are you starting as like NBFC companies ?

Are you starting as private lender than certain deeds would be required to be executed ?

If you can confirm from the above what is the starting point, i can help?

Navdeep

Mr Pratik

Can u upload of the Bombay money laundering Act for benefit of the members here

sir its an a partnership firm where money is lended on document or sales deed basis for which monthly interst wil be colected fr principal amount..and firl limit is till 5 lakhs.

thxx u so much sir,could u expalin abt money laundering act?is this applicable to all micro finance firm?

thxx u sir,its a finance firm where money is lended on property document or sales deed bases and monthly interst is colected on principal amt which is lended.and its a partnership firm  where the firm capital is 5lakh.

Your query is covered in two aspects.

1)      You should enter into valid contract with the party to whom you are lending the money by mortgaging the property and as per the standard of Indian contract act . Only properties with registered entitlement should be considered.

2)      To the best of my knowledge, sale deeds are not valid for taking the loans as per banks, so since the concept of the business is lending the money, sale deeds should not be considered.

Yours is firm but the term micro-financing should not be used, rather the firm can be money lenders as then you have to comply with the guidelines prescribed from time to time of various governing bodies.  Various money laundering acts are there of 2010 and 2009 you can have glance of the same by visiting the site of RBI also, though may not be relevant

But good learning for future propects. I will shares in my next mail as the link is not working.

Thx

navdeep

thxx u so much navdeep sir,can u plz post the link ?and anothr legal reg shld be done?

Dear Mr.Pratic,

Could you clarify that if you meant is Money lenders' act of money laundres' act.

You can register with the money lender's act. As per this act you cant accept deposit but you can lend money up to some limit.

sir iam nt able to gt ths act and gt any registration aplication in rbi?