Is my interest rates are legally correct
9 months ago
Tell me my calculation is correct, my customer borrowed 5k rupees and i am charging 39% in that amount as interest and 4% as processing fees. So in total customer pays me 5000 + 1950 ( ie total interest) and 200 rs (4%) and users pays back in three months as 7150 so emi for 3 months is 2383 rs. Am legally correct? Is it ok charge this much and my company is startup., so it's not a nbfc yet? Am I subject any restrictions??
A.Dear client,
This depends on each state's laws. The government is empowered to fix the maximum rate of interest for secured and unsecured loans. For instance Under the Karnataka Prohibition of Charging Exorbitant Interest Act 2004, no person can charge an interest of more than 18 per cent per annum. Any person who charges interest above this rate is liable for imprisonment for a term that may extend to three years and also a fine that may extend to Rs 30,000.
Please go through the laws of your state
This depends on each state's laws. The government is empowered to fix the maximum rate of interest for secured and unsecured loans. For instance Under the Karnataka Prohibition of Charging Exorbitant Interest Act 2004, no person can charge an interest of more than 18 per cent per annum. Any person who charges interest above this rate is liable for imprisonment for a term that may extend to three years and also a fine that may extend to Rs 30,000.
Please go through the laws of your state
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