Vidhi Codex

The Nagaland Money Lenders Act, 2005

The Nagaland Money Lenders Act, 2005

Finance200530 sections

This law regulates the business of lending money within the state of Nagaland to protect borrowers from unfair practices. It requires anyone who advances loans, including mundy merchants and pawnbrokers, to obtain an annual license from the government before operating. The legislation sets out rules for applying for these licenses, paying fees, and meeting specific conditions to ensure responsible lending. By mandating licensing and defining what counts as a loan, the Act aims to bring transparency to the money lending market and prevent exploitation of debtors while exempting banks, companies, and certain other established financial institutions from its strict requirements.

Start reading →Read full ActSections
  1. 0. Preamble
  2. 1. SHORT TITLE, EXTEND AND COMMENCEMENT:
  3. 2. Definitions: In this Act, unless the context otherwise requires:
  4. 3. 'year' means the financial year.
  5. 4. The licensing authority shall, in the grant or refusal of license, be
  6. 5. Change of place of business by money lender:
  7. 6. Money lenders to exhibit their names over shops:
  8. 7. Interest and charges allowed to money lender:
  9. 8. The rate of interest to be charged under sub-section (1) and (2) shall be notified by the State Government each year at the beginning of the year.
  10. 9. pawn the pawner takes the pawn-ticket.
  11. 10. Money lender and pawnbroker to keep books give receipt etc:
  12. 11. Employment of debt collectors:
  13. 12. The certificate shall be in such form and for such period and shall contain such particulars, as may be prescribed.
  14. 13. Redemption of pledge:
  15. 14. Sale of pledge and inspection of sale book:
  16. 15. Liability of pawn broken in case of fire etc:
  17. 16. A pawnbroker shall be entitled to insure to the extent of the value so noted in the pawn book.
  18. 17. Cognizance of offences:
  19. 18. Certain otherActs of pawnbrokers to be punishable:
  20. 19. Certain Acts of pawner to be punishable:
  21. 20. Penalty for molestation of debtor:
  22. 21. Power to suspend or cancel licenses:
  23. 22. Publication of order of suspension or cancellation:
  24. 23. No compensation for suspension or cancellation of license:
  25. 24. Penalty for carrying on business without license:
  26. 25. Other penalties:
  27. 26. Jurisdiction to try offences:
  28. 27. Contracts not to be void on account of offence:
  29. 28. Power to make rules:
  30. 29. Power to remove difficulties:

PDF: pending for this language.