Interest rate not to exceed 3 %
Morung Express News
Dimapur | August 27
After doing away with the ‘chief guest culture’ within its jurisdiction, the Ao Senso Telongjem Dimapur (ASTD) has come up with another initiative of social reformation by setting guidelines for local money lending systems to come into immediate effect.
Addressing media persons in Dimapur on Saturday, ASTD office bearers pointed out that local money lenders were not adhering to regulations of The Nagaland Money Lenders Act 2005. They said the unregulated local money lending system has become a “social menace” entrapping many people, even leading to divorce and severing of family ties. “To curb such social evils, we have set certain guidelines for local money lending system which will be binding on all Ao individuals, societies, groups or associations involved in money lending business within the jurisdiction of ASTD,” said ASTD President Supu Jamir.
Against the prevailing rate of interest which is as high as 7% to 10 % per month, the ASTD has set a new rate of interest not to exceed 3 % per month and no compound interest is to be charged whatever the duration of the loan is.
The prevailing practice of the debtor paying 10 % to the broker has been rectified too. From now, the lender has to pay the broker his/her percentage. However, the broker’s percentage has been left to the broker and the lender for mutual understanding and negotiation.
Aimed at controlling misuse of land patta for mortgage, the ASTD said that from now on, only the original patta holder shall duly sign for mortgages to be witnessed along with signature by his/her close relatives or legal heir.
The ASTD also decided not to burden the Courts of the Naga Political Groups for issues relating to money lending. “From today, no Ao citizen, individual, groups or associations should give burden to the Courts of any Naga Political Groups as they have enough burdens.”
It was also informed that the set guidelines would apply only when the money lender (individual or NGO) is from the Ao community. The ASTD has empowered all village units within its umbrella to oversee and monitor the implementation of these guidelines and take necessary action against the defaulters.
