10% interest per month is legal?
4 months ago
My mom brought 80k RS from neighbour at 10% interest rate per month and we have to give the interest till be don't pay the amount because they are not ready to deduct from principal amount but somehow I repayed all amount. So I want to know can someone take 10% interest or can I file a complaint?
A.Dear Client,
A business or trading of lending money on higher interest without the permission of competent authority is a criminal offence and comes under the purview of Prevention of Money Laundering Act, 2002 (PMLA). If anybody involved in trading of money lending or any other financial transaction without any license or permission of the concerned regulatory authority like RBI, SEBI, then he or she may be booked under the Prevention of Money Laundering Act, 2002 (PMLA) which was enacted to fight against the criminal offense of legalizing the income/profits from an illegal source. The Prevention of Money Laundering Act, 2002 enables the Government or the public authority to confiscate the property earned from the illegally gained proceeds. As per Sec.3 of PMLA, 2002, whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected with the 1[proceeds of crime including its concealment, possession, acquisition or use and projecting or claiming] it as untainted property shall be guilty of the offense of money-laundering. The offender can face imprisonment for not less than three years, extending up to seven years. Nobody other than the recognized and approved NBFC or Financial Institution can be involved in the trading of financial transactions or money lending business. Being a party to the said transaction, you are equally accountable to face legal consequences once the matter is reported to the competent authority.
A business or trading of lending money on higher interest without the permission of competent authority is a criminal offence and comes under the purview of Prevention of Money Laundering Act, 2002 (PMLA). If anybody involved in trading of money lending or any other financial transaction without any license or permission of the concerned regulatory authority like RBI, SEBI, then he or she may be booked under the Prevention of Money Laundering Act, 2002 (PMLA) which was enacted to fight against the criminal offense of legalizing the income/profits from an illegal source. The Prevention of Money Laundering Act, 2002 enables the Government or the public authority to confiscate the property earned from the illegally gained proceeds. As per Sec.3 of PMLA, 2002, whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected with the 1[proceeds of crime including its concealment, possession, acquisition or use and projecting or claiming] it as untainted property shall be guilty of the offense of money-laundering. The offender can face imprisonment for not less than three years, extending up to seven years. Nobody other than the recognized and approved NBFC or Financial Institution can be involved in the trading of financial transactions or money lending business. Being a party to the said transaction, you are equally accountable to face legal consequences once the matter is reported to the competent authority.
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A.Dear Client,
Consider consulting with a local consumer protection or financial rights organization or seeking advice from a legal professional to understand the legal limits on interest rates in your area. If the interest rate exceeds the permissible limits, you may have grounds to file a complaint or take legal action to address the issue. It's essential to have a clear understanding of the applicable laws and seek guidance to ensure your rights are protected in this matter.
Thankyou
Consider consulting with a local consumer protection or financial rights organization or seeking advice from a legal professional to understand the legal limits on interest rates in your area. If the interest rate exceeds the permissible limits, you may have grounds to file a complaint or take legal action to address the issue. It's essential to have a clear understanding of the applicable laws and seek guidance to ensure your rights are protected in this matter.
Thankyou
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