Chapter V Chapter V

Accredited Loan Providers

1. (1) Any person or institution intending to engage himself or itself as an accredited loan provider shall apply to the registering authority constituted under section 3 of this Act for registration to carry on the business as an accredited loan provider: Provided that only such persons who have necessary educational qualification or knowledge of agriculture and rural economy, knowledge of maintenance of books of accounts and such other conditions as maybe specified in the order issued by the Government in this behalf shall be eligible to become accredited loan providers.
2. (2) The registering authority shall not entertain an application of any person or institution, unless it is countersigned by an institutional creditor having credit link with such person or institution.
3. (3) No person or institution shall commence or carry on the business of providing loan as on accredited loan provider without obtaining a registration under this Act.
4. (4) Every registration granted by the registering authority shall be in such form as may be prescribed.
5. (5) Every registering authority shall maintain for the area under its jurisdiction the registers of all accredited loan providers having valid registration in such form as maybe prescribed.
6. (6) The registers maintained under sub-section (5) shall be published in such manner and at such periodic intervals as may be prescribed.

(1)Every accredited loan provider shall maintain such books of accounts and file such statements of accounts and returns to the registering authority as may be prescribed and a copy of such statement of accounts and returns shall also be furnished to the institutional creditor with whom he is having credit link.

1. (2) The institutional creditor shall, on a requisition from the registering authority, furnish the information concerning the loans provided by an accredited loan provider within such time as may be specified in the requisition.

The provisions of sections 10 and 12 shall mutatis mutandis apply to any dispute between the accredited loan provider and the borrowers.

1. (1) Where the institutional creditor informs the registering authority about the termination of its relationship with the accredited loan provider,

the registering authority shall cancel the registration of the accredited loan provider.

Provided that if within a period of thirty days from the date of cancellation of the registration, such accredited loan provider enters into an agreement with another institutional creditor and his application is countersigned by the new institutional creditor, the registering authority shall restore the registration of such accredited loan provider.

1. (2) The registering authority may, at anytime, for sufficient cause, suspend or cancel a registration granted under section 13. Provided that no order suspending or cancelling the registration shall be passed without giving the accredited loan provider an opportunity to show cause against the proposed action. Explanation:— For the purposes of sub-section (2), prosecution or conviction of an accredited loan provider for violating any of the provisions of this Act shall be sufficient cause for suspension or cancellation of the registration.