Vidhi Codex

The Kerala Money-lenders Act, 1958

The Kerala Money-lenders Act, 1958

Finance195845 of 46 sections available

The Kerala Money-lenders Act, 1958, is a regulatory framework designed to oversee the business of money-lending and pawnbroking within the state of Kerala. It mandates that anyone engaged in the business of advancing loans must obtain a valid license from the government. The Act protects borrowers by capping interest rates, requiring transparent record-keeping, and establishing clear procedures for the redemption of pledges. It empowers authorities to inspect business premises, audit accounts, and penalize unlicensed or predatory lending practices. For the ordinary citizen, this law ensures that private money-lenders operate within legal boundaries, preventing exploitation and providing a mechanism for dispute resolution.

Start reading →Read full ActSections
  1. 1. Short title, extent and commencement
  2. 2. Amendment of section 2
  3. 3. Money-lender to obtain licence
  4. 4. Substitution of new section for section 6
  5. 5. Change of place of business by money-lender
  6. 6. Money-lenders to exhibit their names over shops
  7. 7. Interest and charges allowed to money-lenders
  8. 8. Power to deposit in Court money due on loan
  9. 9. Money-lender to keep books, give receipts etc
  10. 9A. Pawn-ticket to be given to the pawner
  11. 9B. Person producing pawn-ticket presumed to be entitled to redeem the pledge
  12. 9C. Protection of owners and of pawners not having pawn-tickets
  13. 9D. Pawnbrokers to keep books, give receipts, etc
  14. 9E. Redemption of pledge
  15. 9F. Sale of pledge and inspection of sale book
  16. 9G. Liability of pawnbroker in case of theft or fire
  17. 9H. Compensation for depreciation of pledge
  18. 9I. Audit of accounts of money-lender
  19. 10. Appointment of Inspectors and their powers
  20. 10A. Power to order production of accounts and powers of entry and inspection
  21. 10B. Power to summon witnesses and cause production of documents
  22. 10C. Assistance of Police Officers
  23. 11. Money-lender advancing smaller amount or securing higher interest than that specified in the accounts, etc., to be punishable
  24. 11A. Power to demand additional security
  25. 12. Insertion of new section 22
  26. 13. Penalty for molestation of debtor
  27. 14. Power to cancel licence, etc
  28. 15. Insertion of new sections 18C, 18D, 18E, 18F, 18G and 18H
  29. 18. Penalties
  30. 18A. Certain acts of pawnbrokers to be punishable
  31. 18B. Certain acts of pawners to be punishable
  32. 18C. Imposition of penalty by Officers and Authorities
  33. 18D. Penalty for collection of interest in excess of the rate prescribed under section 7.
  34. 18E. Composition of offences.
  35. 18F. Payment and recovery of penalty.
  36. 18G. Liabilities of the money-lender for acts committed by his agents or employees.
  37. 18H. Security from the employees.
  38. 19. Transfer of licence to heir
  39. 20. Contracts not to be void on account of offence
  40. 20A. Power of revision by the Government
  41. 20B. Court not to set aside or modify orders
  42. 20C. Bar of certain proceedings
  43. 20AA. Persons entitled to appear before authorities
  44. 21. Power to make rules
  45. 22. Repeal

Some statutory text is still being prepared for this language version.

PDF: pending for this language.