Bare Act

The Usurious Loans (Tamil Nadu Amendment) Act, 1936

This law amends the Usurious Loans Act of 1918 to protect borrowers in Tamil Nadu. It changes the rules so that courts can now assume a loan deal is unfair if the interest rate is too high or if compound interest is charged to farmers. The amendment clarifies that when a court believes a transaction is substantially unfair, it can take action. It also removes a specific explanation from the original law. This change helps ensure that lenders cannot exploit borrowers by charging excessive or unfair interest rates, particularly in agricultural lending, by shifting the burden of proof in certain cases to make the system fairer.

PDF: pending for this language.