Vidhi Codex

The JAMMU AND KASHMIR MONEY LENDERS AND ACCREDITED LOAN PROVIDERS ACT, 2010

The JAMMU AND KASHMIR MONEY LENDERS AND ACCREDITED LOAN PROVIDERS ACT, 2010

Finance201030 sections

This Act regulates the business of money lending and accredited loan provision within the Union territory of Jammu and Kashmir. It mandates that anyone engaged in the business of advancing loans must obtain a valid registration from the government. The law protects borrowers by requiring lenders to maintain transparent accounts, issue receipts for all payments, and adhere to interest rate caps set by the government. It also prohibits predatory practices like molestation for debt recovery and ensures disputes are resolved through local bodies like Panchayats or Lok Adalats. Essentially, it creates a formal, regulated framework to prevent exploitation and ensure fair lending practices for ordinary citizens.

Start reading →Read full ActSections
  1. 1. Short title, extent and commencement
  2. 2. Definitions
  3. 3. Appointment of registering authority
  4. 4. Register of money lenders
  5. 5. Money lender to obtain registration
  6. 6. Duty of money lender to maintain accounts and furnish copies
  7. 7. Submission of accounts, returns etc.
  8. 8. Power to require production of records or documents, and power of entry, inspection and seizure
  9. 9. Borrowers not bound to admit correctness of accounts
  10. 10. Procedure in disputes regarding loan
  11. 11. Power of Panchayat or Lok Adalat to deposit money due on loan in Panchayat or Lok Adalat.
  12. 12. Suits and applications by unregistered money lenders barred.
  13. 13. Registration of accredited loan providers.
  14. 14. Submissions of accounts, returns etc.
  15. 15. Settlement of disputes.
  16. 16. Cancellation of registration.
  17. 17. Limitation on rates of interest charged by money lenders and accredited loan providers.
  18. 18. Maximum amount of interest recoverable on loans and discharge of loans in certain cases.
  19. 19. Entry of wrong sum in bond, etc. to be an offence.
  20. 20. Penalty for salami, batta, dharmada etc.
  21. 21. Penalty for molestation.
  22. 22. Penalty for carrying on business without registration.
  23. 23. Penalty for contravention of the provisions of the Act.
  24. 24. Composition of offences.
  25. 25. Cognizance of certain offences.
  26. 26. Every officer to be public servant.
  27. 27. Saving of laws relating to agriculturists’ indebtedness.
  28. 28. Power to make rules.
  29. 29. Power to exempt.
  30. 30. Annual report on the administration of the Act.

PDF: pending for this language.