MONEY LENDING BUSINESS - YouTube

hello viewers this is advocate Debisree Adhikary from Kolkata India I have one

more youtube channel Bangla legal advice you will find the link in the

description box so if you are a Bangali or you understand Bengali please visit

my channel and do not forget to subscribe in this video I will tell you

how can you start money lending business and what are the rules and regulations

for carrying on this business no one will deny that it's the one of the most

lucrative and risk-free business for centuries but do you know that until you

carry a valid license to the that effect lending money with an intent to earn

profit in the form of interest is illegal so if you were planning to start

a money mending business or you are already carrying the business without

obtaining a license this video is it must watch for you so watch this video

till end and do not forget to subscribe to my channel if you have not yet

subscribed to my channel please do it right now while watching this video now

see every state in our country has its own money lending rules and regulations

there is no central act with regard to money lending for example west bengal

money lenders amendment act 1981 bihar money lenders act 1974 Rajasthan money

lenders act 1963 Uttar Pradesh regulation of money lending act 1976

Maharashtra money lending regulation act 2014 kerala moneylenders act in 1958 and

so on but the spirit of all the state legislation and provisions are almost

the similar in this video I will tell you who is eligible for this business

how can you apply for a money lending license where you have to apply how long

it takes to issue a license how much it cost is there any fund limit for

running this business what are the procedures to run this business and what

are the accountabilities of you towards your borrowers what will be the rate of

interest and who has the power to decide the same under what circumstances your

license can be canceled when your borrower can put you behind the bar if your

borrower does not pay you back how you can recover your money now it's time to

answer all these queries who is eligible to hold a license if you are not

restricted by any order by any court of law or you have not been convicted for

committing any offense under the provisions of money-lending act of your

state you were eligible to hold a license how you can apply for the

money-lending license the application form is available in the website of the

concerned department so just downloaded fill it and find it before

the concern Department along with you all kyc document like any other regular

application form but you also need to give the address of your registered

place of business so before applying for the license you

have to apply for the the trade license where you have to apply actually depends on

area the concern Department maybe the local tahsildar office it may be the

revenue department or it may be even the office of the additional district

magistrate that you can ascertain very well from the internet how long it takes

to issue a license normally takes 3 to 4 months but it depends state wise but

it's not a lifetime license you have to renew it at intervals how much it costs

it's not costly at all anyone can afford it is there any limit for running this

business the best thing is that under the money lender act you are not

required to disclose the source of your fund now what are the procedures to run

the business every money lender is mandatory required

to maintain cash book ledger book and Receipt book the lender have to maintain

it in the regional language or in English at the time of lending every

link that much delivered to his borrower the Terms and conditions of the loan in

writing the lender is also bound to issue for card acceptance borrower

against each and every repayment after repayment of the entire loan the money

is obliged to give the statement of closure of account along with the

discharge in writing to his borrower in each financial year the money lender

is required to give the full statement of accounts up to dated to each of his borrower but in the middle of the year if any borrower in writing demand

statement of account the money lender is obliged to give him the up-to-date

account within 30 days of receiving his request but as per the moneylenders act

the borrower is not bound by the statement provided by the lender so you

must be very careful and honest while maintaining your accounts now the very

important point what will be the rate of interest and who has the power to decide

the same no money Lender is authorized to charge rate of interest as per his will

he will have to abide by the rate of interest fixed by his state government

for example in West Bengal in case of unsecured loan the rate of interest is

fixed at - twelve and half percent but in case of a secured loan the rate of

interest would be ten percent but if the loan provided is a commercial loan

in that case unsecured loan would be charged at the rate of 20 percent and

secured loan will be charged at the rate of 17 percent now under what

circumstances your license can be cancelled if the lender contravenes any

of the provisions contained in this state moneylenders act on application of

the borrower the competent court has the authority to cancel the license of

the moneylenders apart from that if the license is

obtained by the moneylender but a perpetrating fraud or he obliterates or

attempts to obliterate the license in these circumstances the license can be

permanently cancelled and he can be convicted too by the court when your

borrower can put you behind the bar if your borrower neglects or refuses to

pay you back you can make an attempt you recover your sum by applying before the

competent court but in no situation you are allowed to loiter around

the residence or the workplace of the Borrower neither you can obstruct

or use violence or intimidate the Borrower you also cannot

persistently follow or take away any valuable article owed by the borrower in

lieu of not paying the loan but if you do so upon application or complaint

filed by the borrower the court can put you behind the bar for one year in

addition to that for controlling any rules your borrower can also launch

complaint against you at the website of RBI that is at sachet dot RDI dot o-r-g

dot in now if your borrower does not pay you back how you can recover your money

to get the answer you have to wait for my next video so subscribe to my channel

and keep sharing and liking my videos and if you have any legal query of any

stream you can put it in the comment box I promise you to reply till then have a

good day stay safe thank you

you