Note on registration of Money Lender License

A) Brief details:

No money-lender shall carry on the business of money-lending except in the area for which he has been granted a license and except in accordance with the terms and conditions of such license.

Recently the action was taken under the Bombay Money Lending Act 1946. This bans money lending business without a valid license from the co-operation department. It is mainly aimed from preventing excesses against farmers by unscrupulous money lenders. The department had initiated action against many under the act to prevent farmers’ suicide in Vidarbha. As per the
provisions of the act, an individual cannot lend money at the rate of 18%. Department officials informed that action could be initiated even on a single instance of lending money at the rate of said interest.

B) Eligibility

Any individual who is having clean track record and willing to apply for Money Lending License needs to prove required conditions as mentioned in the Act.

C) Documents required for obtaining license from Government authority:

As per rules and regulations applicable below mentioned documents required for apply Money Lending License:

a) PAN Card
b) 2 Address proofs
c) Registered office address proof
d) Shop and Establishment Act license or Grampanchayat NoC
e) Past track record history
f) 5 Passportsize photographs
g) Bank account statement (minimum previous six months)
h) Income Tax Statements (preferably previous three years)
i) If registered office place is on rent or on lease then Rent Agreement or Lease deed
j) NoC from owner to specify No Objection to run specified business in said premises
k) Character Certificate or Police Verification

C) Place of rendering Services:

The place of rendering services generally shall be our office situated at OM Apartment, 496/B, Kasba Peth, Near KCC Classes, Pune – 411 011.

D) Professional Fees:

Professional fees including government fees will be depends on case to case.

In case of any explanation /information needed, please feel free to contact us.

Thanking you and assuring best professional services.

Sd/-
Pramodkumar R. Ladda
Company Secretary