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Money Lending Licence in Rajasthan
A money lender is the person who lends/credit small amount of money to the person who have need of money.Geerally they charge higher rate of interest compare to Bank because of risk of bed debt.In India, money lenders are governed by the Money Lenders Act in different states.(like in Raj.- Rajasthan Money Lenders Act, 1963.)
Any person who want to do money lending business in Rajasthan can obtain Money Lending License. Money Lending Licence is issued once the applicant fulfills the conditions of Act and Rules prescribed in Rajasthan Money Lenders Act, 1963 and Rules made thereunder :
Who can be Money lender
An individual
An HUF
A company (not being a company) as defined in section 5 of the banking regulation act ,1949 body or institution other than such of them as may, by notification .
An unincorporated body of individuals which Carries on the business of money lending in the state ;or Has his or its principle place of business in the state.
Validaty of Money Lending Licence
A licence shall be valid for a period of three years from the [date of its issue or up to 31st March of the year in which its terms is to expire, whichever is earlier. Provided that when an application for renewal of a licence has been received by an Assistant Registrar within the prescribed period, the licence shall, until the application is finally disposed of, be deemed to be valid.
Documents Required
PAN and Aadhar of Applicant
Last Three Years Income Tax Return along with computation of Income
Resident Certificate of Applicant
Character Certificate of Applicant duly issued by Gazette Officer in two Copies
Patwari report
Passport size photographs.
Last 1 Year Bank Statement
Details of Previous business, if any
form A duly singed
Mail id & Phone No.
FAQS
How much Maximum Interest that can be charged on the basis of Money Lending license?
As per money lending act the amount of Interest on loan cannot be in excess of principal amount.
What is Validaty of Money Lending Licence?
The Licence issued is valid for period of 3 Years. Licence can be renewed before the expiry of Validity.
Is the Display of licence compulsory?
Yes, Every money lender shall exhibit his licence in a prominent place on the premises where he carried on the business of money-lending.
Is it transfer of a licence possible when a licensee dies?
Yes, possible
by follow below Procedure
(1) Any person claiming to be the legal representative of a deceased licensee may apply to the licensing authority in Form No. 5 for transferring in his name the licence standing in the name of the deceased.
(2) A certificate of death issued by the Village Panchayat or the Municipal Board or Council concerned or the registered medical practitioner who attended on the deceased shall ordinarily accompany the application in Form No. 5.
(3) The declaration to be obtained from the legal representative under sub-section (3) of section 21 shall be in Form No. 5.
Can a money lender work without money lending license?
No
Save as provided in section 49, no money-lender shall, after the expiration of six months from the date on which this Act brought into force, carry on, or continue to carry on, the business of money-lending except in the area for which he has been granted a licence and except in accordance with the terms and conditions of such licence.
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