The Andhra Pradesh Micro Finance Institutions (Regulation of Money Lending) Act, 2010
The Andhra Pradesh Micro Finance Institutions (Regulation of Money Lending) Act, 2010
The Andhra Pradesh Micro Finance Institutions (Regulation of Money Lending) Act, 2010 regulates microfinance institutions operating across the state of Andhra Pradesh. It mandates that all such lenders register with local authorities, publicly display their interest rates, and cap total interest charges so they do not exceed the loan principal. The law prohibits lenders from demanding collateral or using coercive recovery methods against borrowers. Designed primarily to protect Self-Help Group members and poor households from predatory lending practices, this statute ensures fair financial operations, safeguards vulnerable debtors, and establishes formal mechanisms for resolving disputes.
- 1. Short title, extent and commencement.
- 2. Definitions.
- 3. Registration of MFIs.
- 4. Register of MFIs.
- 5. Power to suspend/ cancel registration.
- 6. Member of SHG not to be member of more than one SHG.
- 7. MFIs not to seek security for loan.
- 8. Display of rates of interest charged by MFIs.
- 9. Maximum amount of interest recoverable on loans and discharge of loans in certain cases.
- 11. Duty of MFIs to maintain accounts and furnish copies.
- 12. Submissions of monthly statement by MFIs.
- 13. Power to require production of records or documents and power of entry, inspection and seizure.
- 14. Complaints.
- 15. Settlement of Disputes.
- 16. Penalty for coercive actions MFIs.
- 17. Penalty for carrying on business without registration.
- 18. Penalty for contravention of the provisions of the Act.
- 19. Every officer to be public servant.
- 20. Bar of certain proceedings.
- 21. Power to remove difficulties.
- 22. Power to give directions.
- 23. Power to make rules.
- 24. Annual Report on the administration of the Act.
- 25. Repeal of Ordinance 9 of 2010.
PDF: pending for this language.