Vidhi Codex

THE MADHYA PRADESH MONEY-LENDERS ACT' 193,1

The Chhattisgarh Money-Lenders Act, 1934

Finance193426 sections

The Madhya Pradesh Money-lenders Act, 1934 regulates private money-lending transactions to ensure transparency and protect borrowers from unfair practices. It applies to individuals and entities operating money-lending businesses in the state, while excluding formal banking institutions, cooperative societies, and government bodies. The legislation requires money-lenders to register with local authorities, issue detailed transaction vouchers, provide annual written statements of account to debtors, and issue official receipts for repayments. Crucially, courts cannot award interest exceeding the original loan principal, preventing predatory debt accumulation. By establishing legal accountability and clear record-keeping rules, the Act safeguards financial consumers against exploitation and unrecorded claims.

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  1. 1. Short title, extent and commencement.
  2. 2. Definitions.
  3. 2-A. Money-lender to deliver voucher to the debtor containing description of loan. etc.
  4. 3. Maintenance of accounts by money-lender and supply of statements thereof to debtors
  5. 4. Evidential value of copies of accounts.
  6. 5. Debtors not bound to admit correctness of accounts supplied.
  7. 6. Receipt for repayment of loan.
  8. 7. Procedure of court in suits regarding loans.
  9. 8. Savings.
  10. 9. Power of court to limit interest recoverable in certain cases.
  11. 10. Power of court to limit interest to the extent of principal of loan.
  12. 11. Power to direct payment of decretal amount by instalments.
  13. 11-A. Register of money-lenders.
  14. 11-B. Registration of money-lenders and registration certificate.
  15. 11-BB. Transfer of old record by Sub-Registrar to Tahsildars.
  16. 11-C. Registration fee.
  17. 11-D. District in which business is to be carried on.
  18. 11-F. Bar to carry on business without registration certificate.
  19. 11-FF. Penalty for contravention of provisions of section 2-A and section 3(1) (C) of the Act.
  20. 11-G. Composition of offences.
  21. 11-H. Suit not to proceed without registration certificate, etc.
  22. 11-I. Continuance in force of registration certificates.
  23. 11-J. Interpretation of district.
  24. 12. Power to make rules.
  25. 13. Inapplicability of Act to proprietors.
  26. 14. Inapplicability of Act to certain Corporations.

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