What is the maximum interest rate allowed by law in India?

The State government on Thursday fixed 18% as the maximum rate of interest that could be charged by moneylenders. Finance Minister T.M.

Is it legal to lend money on interest in India?

“In this case, the amount of such loan cannot exceed $250,000 per year and the loan should be taken for at least one year and that too interest-free,” said Parthasarathy. An Indian resident can also lend to an NRI relative. This loan can only be given for a period of one year and the same shall be interest-free.

Is it legal to lend money with interest?

However, any non-relative, or friend, can give you a gift of up to Rs. 50,000 only and gifts above that are taxable. But, if you provide friends with a loan of any amount (interest-free or with interest), it becomes tax-free.

Is it illegal to lend money on interest in India?

This is money lending which is illegal in India, if your friend has license for lending the money on interest then only he is right otherwise not. There is no such cap. Once you execute an agreement or promissory note wherein you agree to repay the loan at a particular rate of interest you are bound by it. Talk to Advocate Ashish Davessar NOW!

Which is the Maharashtra Money Lending Regulation Act, 2014?

MAHARASHTRA MONEY-LENDING (REGULATION) ACT, 2014. (As modified upto the 31st August 2018) PRINTED IN INDIA BY THE MANAGER, GOVERNMENT PRESS, WAI AND PUBLISHED BY THE DIRECTOR, GOVERNMENT PRINTING, STATIONERY AND PUBLICATIONS, MAHARASHTRA STATE, MUMBAI-400 004. 2018 Price Rs. 32.00] 2014 Mah.

Is there a cap on interest rates in India?

A Reserve Bank of India (RBI) committee has proposed setting a cap on interest rates that can be charged by private money lenders and has recommended regulation of the business through appropriate legislation.

What’s the maximum interest rate for money lending?

The Money Lending Act prohibit from charging interest rate more than 21% for unsecure loans for non-agri people and 18% for secured loans for non-agri people the % for agri is 12% and 15% respectively. But for peer to peer lending, due to lack of regulation as of now, the max interest I see that has been charged in 36% on reducing principle.