Bare Act
The Madhya Pradesh Money-Lenders Act, 1934
Finance193414 sections
The Madhya Pradesh Money-lenders Act, 1934, serves as a regulatory framework to oversee private money-lending transactions. It mandates that individuals or entities engaged in the business of lending money must register with the local Tahsildar and maintain transparent records. The Act protects debtors by requiring lenders to provide signed vouchers for loans, receipts for repayments, and annual statements of accounts. Crucially, it limits the interest a lender can recover to the amount of the principal, preventing exploitative debt traps. By enforcing these standards, the Act ensures accountability and provides a legal mechanism for debtors to challenge unfair lending practices in court.
- 0. Preamble
- 1. Short title, extent and commencement
- 2. Definitions
- 3. Maintenance of accounts by money-lender and supply of statements thereof to debtors
- 4. Evidential value of copies of accounts
- 5. Debtors not bound to admit correctness of accounts supplied
- 6. Receipt for repayment of loan
- 7. Procedure of court in suits regarding loans
- 8. Savings
- 9. Power of court to limit interest recoverable in certain cases
- 10. Power of court to limit interest to the extent of principal of loan
- 11. Power to direct payment of decretal amount by instalments
- 12. Power to make rules
- 13. Inapplicability of Act to proprietors,
PDF: pending for this language.