Chapter VI Chapter VI

Interest Rate Ceiling providers.— (1) The Government may from time to time by notification in the Official Gazette, specify the maximum rates of interest for any local area chargeable by money lenders and accredited loan providers and separate rates of interests may be specified in respect of secured and unsecured loans.

1. (2) If any money lender or accredited loan provider charges or receives from a borrower

interest at a rate exceeding the maximum rate fixed by the Government under sub-section (1) he shall be liable for penalty as specified in section 24.

1. (3) The maximum rate of interest notified by the Government under sub-section (1), shall be

1. (4) All money lenders and accredited loan providers shall display the rates of interest charged by them, both on secured as well as unsecured loans, in a conspicuous place in their premises.

cases.—

1. (1) No money lender or accredited loan provider shall recover towards the interest in respect of any loans advanced by him, an amount in excess of the principal amount.
2. (2) Any loan in respect of which the moneylender or accredited loan provider has realized from

the borrower an amount equal to or more than twice the amount of the principal, such loan shall stand discharged and the amount, if any, so realized in excess of twice the amount of the loan shall be refunded by the money lender or accredited loan provider, as the case may be, to the borrower.