Term of licence

A licence shall be valid for a term of three years: Provided that where a money-lender holding a licence has made an application for a fresh licence before the date prescribed under sub-section (1) of section 6, for the succeeding term, such money-lender shall, notwithstanding the expiry of the term of his licence, be deemed to have a valid licence until orders are received by him on his application for the fresh licence. Explanation.—Where a licence has been granted in the middle of a year, for the purpose of computing the term of licence, the remaining part of the year shall be deemed to be a year. In section 10 of the Karnataka Money Lenders Act, 1961 (Karnataka Act 12 of 1962) (herein after referred to as the Principal Act) for the words “five years” the words “three years” shall be substituted.