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The Andhra Pradesh Micro Finance Institutions (Regulation of Money Lending) Act, 2011

General201125 sections

The Andhra Pradesh Micro Finance Institutions (Regulation of Money Lending) Act, 2011 regulates microfinance institutions operating within Andhra Pradesh to protect low-income borrowers and Self-Help Groups from predatory lending. It mandates official registration for all microfinance lenders, requires public display of interest rates, and caps total recoverable interest so it never exceeds the loan principal. The law forbids lenders from demanding collateral security from group members or employing coercive recovery tactics. By establishing mandatory dispute settlement procedures and strict record-keeping rules, this legislation safeguards vulnerable rural citizens against exploitative debt traps while enforcing ethical financial practices.

Start reading →Read full ActSections
  1. 0. Preamble
  2. 1. Short title, extent and commencement
  3. 2. Definitions. - In this Act, unless the context otherwise requires,-
  4. 3. Register of MFIs
  5. 4. Register of MFIs
  6. 5. Power to suspend/ cancel registration
  7. 6. Member of SHG not to be member of more than one SHG
  8. 7. SHGs, within a period of three months from the date of commencement of this Act.
  9. 8. Display of rates of interest charged by MFIs
  10. 9. Maximum amount of interest recoverable on loans and discharge of
  11. 11. Duty of MFIs to maintain accounts and furnish copies
  12. 12. Submissions of monthly statement by MFIs - Every MFI shall submit a
  13. 13. Power to require production of records or documents and power of
  14. 14. Complaints
  15. 15. Settlement of Disputes
  16. 16. Penalty for coercive actions MFIs
  17. 17. Magistrate.
  18. 18. Penalty for contravention of the provisions of the Act
  19. 19. Every officer to be public servant
  20. 20. Bar of certain proceedings
  21. 21. Power to remove difficulties
  22. 22. Power to give directions
  23. 23. Power to make rules
  24. 24. Annual Report on the administration of the Act
  25. 25. Repeal of Ordinance 9 of 2010

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