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Section 8: Adjustment of interest

The Kerala Prohibition of Charging Exorbitant Interest ActState Act of Kerala · Act 2 of 2013

The Court may, on petition filed by the debtor for settlement of loan, including the interest thereon, pass an order for the adjustment of the interest, if any, paid by the debtor, over and above the rate of interest specified under sub-section (1) of section 7 of the Kerala Money-Lenders Act, 1958 (35 of 1958), towards the loan.

9. Penailty,—(1) Notwithstanding anything contained in the Kerala Money-Lenders Act, 1958 (35 of 1958),—

(a) whoever contravenes the provisions of section 3 shall, on conviction, be punished with imprisonment for a term which may extend to three years and also with fine which may extend to fifty thousand rupees;

(b) whoever harasses any debtor mentally or physically or abets such harassment for recovery of any loan, shall, on conviction, be punished with imprisonment for a term which may extend to one year and also with fine which may extend to ten thousand rupees.

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(2) Where the person who has advanced the loan or any other person as directed by him, harasses the debtor mentally or physically and consequently and immediately thereafter the debtor commits suicide, the person who advanced the loan, shall, on conviction, be punished with imprisonment tor a term which may extend to five years and also with fine which may extend to fifty thousand rupees.

Where this provision sits

ActThe Kerala Prohibition of Charging Exorbitant Interest Act
Section8
Marginal noteAdjustment of interest
JurisdictionState of Kerala
StatusIn force as published by the source

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