Micro Finance Institutions or Money Lending Agencies or Organizations or Lender not to seek security

No Micro Finance Institution (MFI) or Money Lending Agencies or Organizations or Lender shall seek any security from a borrower by way of pawn, pledge or other security for the loan: Provided that, any such security obtained from a borrower before the date of commencement of this Act shall forthwith stand released in favor of the borrower. Explanation: For the purpose of this Act “security” means, any form of collateral.