Money Lender Licence
Brief details:
No money-lender shall carry on the business of money-lending except in the area for which
he has been granted a license and except in accordance with the terms and conditions of
such license. Recently the action was taken under the Bombay Money Lending Act 1946.
This bans money lending business without a valid license from the co-operation
department.
It is mainly aimed from preventing excesses against farmers by unscrupulous money
lenders. The department had initiated action against many under the act to prevent
farmers' suicide in Vidarbha.
As per the provisions of the act, an individual cannot lend money at the rate of 18%.
Department officials informed that action could be initiated even on a single instance of
lending money at the rate of said.
Eligibility
Any individual who is having clean track record and willing to apply for Money Lending License needs to prove required conditions as mentioned in the Act.
Documents required for obtaining license from Government authority: As per rules and regulations applicable below mentioned documents required for apply Money Lending License:
- a) PAN Card
- b) 2 Address proofs
- c) Registered office address proof
- d) Shop and Establishment Act license or Grampanchayat NoC
- e) Police Verification
- f) 5 Passport size photographs
- g) Bank account statement (minimum previous six months)
- h) Income Tax Statements (preferably previous three years)
- i) If registered office place is on rent or on lease then Rent Agreement or Lease deed
- j) NOC from owner to specify No Objection to run specified business in said premises
- k) Index II and7/2 extracts of own property
- l) Aadhar card, Leaving Certificate
- m) Non black Listed Certificate or Affidavit