In an effort to curb harassment by moneylenders, the Maharashtra government implemented the Maharashtra (Regulation) Act-2014 statewide on January 16, 2014.
Despite this, many farmers in Maharashtra continue to rely on loans from private moneylenders.
Fixed Interest Rates and Need for Control
The state government has set specific interest rates for loans extended by moneylenders to both farmers and non-farmers.
However, both legal and illegal moneylenders continue to exploit borrowers by charging exorbitant interest rates, going as high as 48%.
There is an urgent need to enforce stricter control over such moneylenders.
Opportunity to Become a Registered Moneylender
Nagpur district alone has 1,049 authorized and registered moneylenders, each required to renew their licenses annually.
The Cooperative Department has introduced an online application process for obtaining a moneylender’s license, making it more accessible for interested individuals to engage in the moneylending business.
Registration Process and Fee Payment
To acquire the license, interested applicants must register and log in to the online platform. The fee payment can be made through various modes such as debit card, credit card, banking, or UPI.
Important FAQs for Prospective Moneylenders
Q: What is the maximum interest rate that moneylenders can charge?
- For Farmers: Salvation loan – Annual interest rate of 9%. Loan without Salvage – Annual interest rate of 12%.
- For Non-Farmers: Annual interest rate of 15% for secured loans.
Legal Consequences and Reporting Misconduct
In cases where moneylenders cause trouble or engage in unlawful practices, affected individuals are advised to file complaints with the Cooperative Department or the nearest police station.
The new law provides for a maximum prison term of five years or a fine of Rs 50,000 for unlicensed moneylenders, aiming to curb illegal moneylending practices.
By promoting registered moneylenders and implementing stricter regulations, the Maharashtra government aims to protect borrowers from harassment and exploitation while fostering a transparent and accountable moneylending system.
