Bare Act
The Kerala Prohibition of charging Exorbitant Interest Act 2012
This Act serves as a legal shield for citizens against predatory lending practices in Kerala. It explicitly prohibits the charging of "exorbitant interest"—rates exceeding those permitted under the Kerala Money-Lenders Act, 1958—which includes exploitative schemes like daily, hourly, or "meter" interest. The law empowers debtors to deposit loan repayments directly into court if lenders refuse to accept fair amounts or engage in harassment. It criminalizes such lending, classifying offences as cognizable and non-bailable. Furthermore, it establishes strict penalties for harassment and imposes severe consequences if such harassment leads to a debtor's suicide, ensuring accountability for lenders who exploit vulnerable individuals.
- 0. Preamble
- 1. Short title and commencement.
- 2. Definitions.
- 3. Prohibition of charging exorbitant interest.
- 4. Offences to be cognizable and non-bailable.
- 5. Deposit of money and presentation of petition before the Court and the procedure related thereto
- 6. Restoration of possession of property.
- 7. Voluntary disclosure.
- 8. Adjustment of interest.
- 9. Penalty.
- 10. Court fees.
- 11. Act not to be in derogation of any other laws.
- 12. Act shall be in addition to and not in derogation of the provisions of any other law for the time being in force.
- 13. Repeal and saving.
PDF: pending for this language.