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MONEY LENDERS AND PAWN BROKERS

KARNATAKA MONEY LENDERS AND PAWN BROKERS ACT

 

      The Karnataka Money Lenders Act 1961 and Karnataka Pawn Brokers Act 1961 came into effect from 29-3-1962 with a view to regulate the Money Lending and Pawn Broking Business in Karnataka State. The Karnataka Money Lenders Rules, 1965 have been framed and came into effect from 23-3-1965. Similarly Karnataka Pawn Brokers Rules 1966 come into effect from 19-7-1966.

      Any person who intends to conduct Money Lending and Pawn Broking business shall obtain license as per the Section 6 & 4 of the said Acts respectively, renewable every five years. He shall pay the license fee to Government to the extend of Rs.5000/- for M.L. and Rs.2500/- for P.B. for a period of five years.

  The licensee is required to remit the Security Deposit to the Government which are as follows depending upon the turnover he has made :-

  •  upto Rs. 1 lakh Rs.5,000/-
  •  from 1-5 lakhs Rs.10,000/-
  •  from 5-10 lakhs Rs.25,000/-
  •  above 10 lakhs Rs.50,000/-

      Charging Exorbitant Interest by the Money Lenders is prohibited. As per Government Notification dated 28-9-2003, they shall not charge more than 14% (for secured) and 16% (for unsecured loans).

Sl. No

Details

Count

1

Money Lending

5,773

2

Pawn Broker

7,306

3

Finance Institutions

 8,527

4

Chit Funds

1,653

Last Updated: 30-05-2023 11:39 AM Updated By: Admin


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