Guide to Obtaining a Money Lending License in Assam
2 months ago
How do I apply for a money lending license in Assam? And what's the maximum interest rate allowed per month according to the law?
A.Dear Client,
Under the Assam Money Lender's (Amendment) Act, 1968, any person engaged or intending to engage in the money-lending business must register by submitting an application to the Registrar in the prescribed form along with the required fees. Upon registration, the Registrar issues a certificate in the prescribed format.
Section 9(1) of the Act stipulates that no money-lender can, for any loan made before or after the commencement of the Act, recover, whether through legal means or otherwise, an amount exceeding double the principal (both interest and principal combined). However, this provision does not apply to certain entities:
1. Banks lending money at an interest rate not exceeding 6 percent per annum.
2. Subscribers to a loan, debentures, or other securities issued by the Government, a public body, a bank, or a company.
In summary, the Assam Money Lender's (Amendment) Act, 1968, regulates money-lending businesses, requiring registration and limiting the total amount recoverable from borrowers. Certain exemptions are specified, including for banks and subscribers to loans from specified entities.
Under the Assam Money Lender's (Amendment) Act, 1968, any person engaged or intending to engage in the money-lending business must register by submitting an application to the Registrar in the prescribed form along with the required fees. Upon registration, the Registrar issues a certificate in the prescribed format.
Section 9(1) of the Act stipulates that no money-lender can, for any loan made before or after the commencement of the Act, recover, whether through legal means or otherwise, an amount exceeding double the principal (both interest and principal combined). However, this provision does not apply to certain entities:
1. Banks lending money at an interest rate not exceeding 6 percent per annum.
2. Subscribers to a loan, debentures, or other securities issued by the Government, a public body, a bank, or a company.
In summary, the Assam Money Lender's (Amendment) Act, 1968, regulates money-lending businesses, requiring registration and limiting the total amount recoverable from borrowers. Certain exemptions are specified, including for banks and subscribers to loans from specified entities.
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A.Dear Client,
Under the Assam Money Lender's (Amendment) Act, 1968, every person who carries on or intends to carry on the business of money-lending shall get himself registered by an application made to the Registrar in the prescribed form and with prescribed fees and, on such registration, the Registrar shall grant a registration certificate to him in such form as may be prescribed. As per Sec.9(1) of the Act. no money-lender shall, in respect of any loan made before or after the commencement of this Act, recover, on account of interest and principal, whether through Court or otherwise or by way of usufruct of lands in usufructuary mortgages, a sum greater in aggregate than double the principal of the loan :
Provided that nothing in this sub-section shall affect:-(i) A Bank advancing money at interest not exceeding 6 percent. per annum or (ii) Subscribers to a loan made to or debentures or other securities of any description issued by the Government, a public body, a Bank, or a Company. For further guidance, you need to visit the office of the Registrar appointed under the Assam Money Lenders Act, 1934.
Under the Assam Money Lender's (Amendment) Act, 1968, every person who carries on or intends to carry on the business of money-lending shall get himself registered by an application made to the Registrar in the prescribed form and with prescribed fees and, on such registration, the Registrar shall grant a registration certificate to him in such form as may be prescribed. As per Sec.9(1) of the Act. no money-lender shall, in respect of any loan made before or after the commencement of this Act, recover, on account of interest and principal, whether through Court or otherwise or by way of usufruct of lands in usufructuary mortgages, a sum greater in aggregate than double the principal of the loan :
Provided that nothing in this sub-section shall affect:-(i) A Bank advancing money at interest not exceeding 6 percent. per annum or (ii) Subscribers to a loan made to or debentures or other securities of any description issued by the Government, a public body, a Bank, or a Company. For further guidance, you need to visit the office of the Registrar appointed under the Assam Money Lenders Act, 1934.
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