State Act

THE RAJASTHAN MONEY-LENDERS ACT, 1963

29, Limitation on rates of interest. —(1) The State Government may, from time to time, by notification in the Official Gazette, fix the maximum rates of simple interest for any class of business of money-lending in respect of secured and unsecured loan. (2) No money-lender shall charge or receive from a debtor interest at a rate exceeding the maximum rate fixed by the State Government under sub section (1). (3) Notwithstanding anything contained in any law for the time being in force, no agreement between a money-lender and a debtor for payment of interest at rates exceeding the maximum rates fixed by the State Government under sub-section (I) shall be valid and no court shall, in any suit to which this Act applies, award interest exceeding the said rates. (4) If any money-lender charges or receives from a debtor, interest at the rate exceeding the maximum rates fixed by the State Government under sub-section (i), he shall for the purpose of section 40. be deemed to have cont- ravened the provisions of this Act.