The Tamil Nadu Prohibition of Charging Exorbitant Interest Act, 2003
The Tamil Nadu Prohibition of Charging Exorbitant Interest Act, 2003
General200312 sections
This Act prohibits money lenders from charging exorbitant interest rates, such as daily, hourly, or illegal compound rates, beyond government-approved limits across the state of Tamil Nadu. It applies to all lenders and borrowers in the state. The law penalizes charging predatory interest and harassing borrowers with imprisonment and fines. Additionally, if a debtor or family member commits suicide following harassment by a lender, the lender is presumed to have abetted the suicide. Borrowers are empowered to deposit fair repayments into court, request adjustment of overpaid interest, and recover property illegally seized by lenders.
- 1. Short title, extent and commencement.
- 2. Definitions.
- 3. Prohibition of charging exorbitant interest.
- 4. Penalty.
- 5. Deposit of money and presentation of petition to Court and the procedure thereof.
- 6. Restoration of possession of property.
- 8. Adjustment of interest.
- 9. Abetment of suicide.
- 10. Court fees.
- 11. Act not to be in derogation to other laws.
- 12. Application of provisions of Money-lenders Act.
- 13. Repeal and Saving.
PDF: pending for this language.