(1) Every application for a money-lender’s licence shall be in writing and shall be made to the licensing authority prescribed under this Act:
Provided that a person under the age of eighteen years shall be eligible to apply for a licence only through a guardian:
Provided further that if any person acting as a guardian on behalf of a minor applies for and obtains a licence under this Act, such guardian shall be subject to all the provisions of this Act as if the licence has been granted to himself.
458 *[(2) Every licence shall be granted and renewed in such form and subject to such conditions including conditions as to payment of licence fee not exceeding five hundred rupees as the Government may from time to time, by notification in the official gazette, determine].
(3) The licensing authority may be order in writing refuse to grant *[and renew] a licence if any authority is satisfied:-
(a) that the applicant has not complied with the provisions of this Act or the rules made thereunder in respect of an application for the grant of a licence; or
(b) that the applicant has made wilful default in complying with or knowingly acted in contravention of any requirement of this Act; or
(c) that the applicant has:--
(i) knowingly participated in or connived at any fraud or dishonesty in the conduct of or in connection with the business of money- lending; or
(ii) been found guilty of an offence under Chapter XVII or Chapter XVIII of the Indian Penal Code (Central Act 45 of 1860); or
(iii) been found guilty of an offence **[under section 10A or section 11 or section 13] on two or more occasions; or
(d) that the applicant has his licence cancelled within six months before the date of application.
(4) Any person aggrieved by an order of the licensing authority under subsection (3) may, within one month from the date of communication of such order to him, appeal to the prescribed authority.
(5) Every licence granted under this Act shall, subject to the provisions of sub-section (7), expire on the last day of the year in which it was granted.
________________________________________________________________________ * Amended vide Act No: 7 of 2004 w.e.f 7-9-2004 and published in Extraordinary Gazette Part-Il No. 24 dated 10-9-2004.
** Amended vide Act No: 7 of 1983 w.e.f 11-12-83 and published in Extraordinary Gazette Part-Il No. 30 dated 31-12-83.
459
(6) A licence granted under sub-section (2) may be renewed from year to year and the provisions of sub-sections (1) to (5) shall apply in relation to the renewal of a licence as they apply in relation to the grant of a licence.
(7) If orders refusing to renew a licence are not communicated to a moneylender by the licensing authority before the expiry of his current licence, the moneylender shall, notwithstanding such expiry, be deemed to have a valid licence till orders are received by him on his application for renewal.
(8) Nothing in this section shall be deemed to disentitle a moneylender, whose licence, has expired or has not been renewed, from taking steps to recover any loan advanced during the period when the licence was in force.
Change of place of business by money-lender
5. No money-lender shall change his place of business without previous notice to the licensing authority and without having the address of the new place of business duly endorsed on his licence.
Money-lenders to exhibit their names over shops
6. Every money-lender shall always keep exhibited over his shop or place of business his name with the word “money-lender” and its equivalent in the regional language.
Interest and charges allowed to money-lenders
7. *[(1) Notwithstanding anything contained in the decree dated 22nd September, 1935, no money lender shall charge interest on any loan, at a rate exceeding such rate as the Government may, by notification, fix from time to time:
Provided that the rate of interest as may be fixed by the Government shall be correlated to the current bank rates of lending as may be fixed by the Reserve Bank of India, from time to time.]
________________________________________________________________________ * Amended vide Act No: 7 of 1983 w.e.f 11-12-1983 and published in Extraordinary Gazette Part-Il No. 30 dated 31-12-1983.
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(2) A money-lender may demand and take from the debtor such charges and in such cases, as may be prescribed.
(3) A money-lender shall not demand or take from the debtor any interest, profit or other sum whatsoever in excess of that payable under subsection (1).
Power to deposit in Court, money due on loan