Mangaluru: Private Financiers Warned against Charging High Interest on Borrowings

Mangaluru: B K Saleem, deputy registrar of cooperative societies, Dakshina Kannada, has informed that borrowers, among them farmers in particulars, obtain loans from cooperative institutions and private money-lenders and pawn-brokers and when they fail to repay the dues, they resort to suicide.

He has reminded such private lenders that under the Karnataka Money-lending Act 1961 section 28, interest can be charged only up to 14% per annum on secured loans and up to 16% pa on non-secured loans.

He has cautioned that charging interest in excess of the stipulated rates becomes a punishable offence under section 39 of the said Act. Cases of overcharging, thus putting the farmers to hardships, if found to have led to unpleasant developments, will be severely dealt with under the Act by the officials.

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