State Act

7

Section 7. MFIs not to seek security for loan.

The Telangana Micro Finance Institutions (Regulation of Money Lending) Act, 2011.

Act no. 1 of 20112011In forceTelangana (State Act)

7. No MFI shall seek any security from a borrower by way of pawn, pledge or other security for the loan: Provided that any such security obtained from a borrower before the commencement of this Act shall forthwith stand released in favour of the borrower.