The Telangana Micro Finance Institutions (Regulation of Money Lending) Act, 2011
The Telangana Micro Finance Institutions (Regulation of Money Lending) Act, 2011
This legislation regulates microfinance institutions operating within the State of Telangana, specifically targeting entities lending to self-help groups and vulnerable individuals. It requires all microfinance organizations to register with local authorities, publicly display interest rates, and obtain prior approval before issuing additional loans to borrowers with outstanding debts. The law caps total recoverable interest at the original principal amount, releases collateral secured from borrowers, and strictly prohibits coercive debt collection tactics such as home visits or harassment. This law matters because it shields impoverished and rural borrowers from predatory lending practices, extreme interest burdens, and abusive recovery methods.
- 1. Short title, extent and commencement.
- 3. Registration of MFIs.
- 4. Register of MFIs.
- 5. Power to suspend/cancel registration.
- 6. Member of SHG not to be member of more than one SHG.
- 7. MFIs not to seek security for loan.
- 8. Display of rates of interest charged by MFIs.
- 9. Maximum amount of interest recoverable on loans and discharge of loans in certain cases.
- 10. Prior approval for grant of further loans to SHGs or their members.
- 11. Duty of MFIs to maintain accounts and furnish copies.
- 12. Submissions of monthly statement by MFIs.
- 13. Power to require production of records or documents and power of entry, inspection and seizure.
- 14. Complaints.
- 16. Penalty for coercive actions against MFIs.
- 17. Penalty for carrying on business without registration.
- 18. Penalty for contravention of the provisions of the Act.
- 19. Every officer to be public servant.
- 21. Power to remove difficulties.
- 22. Power to give directions.
- 24. Annual Report on the administration of the Act.
- 25. Repeal of Ordinance 9 of 2010.
PDF: pending for this language.