DIMAPUR, OCT 4 (MExN): Money lenders, excluding banks or companies, are to follow certain guidelines prescribed in the Nagaland Money Lenders Act, 2005, if they are to continue the money-making-money business in the State. Provisions of the Act can now be viewed and downloaded from the finance department’s official website- http: /finngl.nic.in
The Act, which received the assent of the Governor of Nagaland on September 28, 2005 prohibits lenders from charging interest on any loan advanced, whether on a pledge or otherwise, at a rate exceeding more than 3 percent above the prevailing average bank rates. The rate of interest is also to be charged at simple interest per annum on the principal amount of the loan. Any person into the trade is to exhibit in large characters over the outer door of his shop or place of business his name with the words “Money Lender.”
Licences are to be obtained annually if any person is to carry on the business in any part of Nagaland. A lender without a licence can be penalized with imprisonment for a term which may extend to one year or with a fine which may extend to Rs 2500, or with both.
“No money lender shall change his place of business without previous notice to the licensing authority and without getting the address of the new place of business duly endorsed on his licence,” the Act states.
Every pawnbroker, on taking pledge in pawn, is to issue a ticket to the pawner a ticket in the government prescribed form. Money lenders and pawnbrokers are also to maintain books, give receipts and practice other formalities. For full details visit the website.
