Usurious Loans Act, 1977

Usurious Loans Act, 1977

The Usurious Loans Act, 1977, is a protective civil statute enacted for the former state of Jammu and Kashmir. Its primary purpose is to prevent the exploitation of borrowers by lenders who charge exorbitant interest rates or impose unfair terms. The Act empowers civil courts to intervene in loan disputes, allowing them to re-examine transactions, reduce interest rates to reasonable levels, and set aside unfair agreements. It applies to any suit involving the recovery of a loan. For the ordinary citizen, this law acts as a safeguard against predatory lending, ensuring that debt obligations remain equitable and legally justifiable.

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