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is private finance illegal when financier threatening the borrower


25-Aug-2023 (In Banking / Finance Law)
is private financing illegal specially when it is 10% for 15 days or 18 % for 30 days? and threatening the borrower when the due is not paid on time?
Answers (1)

Answer #1
716 votes
Yes, it is illegal if the lender is charging exorbitant interest (not in confirmity with TN Money Lenders Act 1957). A lender can be prosecuted if charged exorbitant interest and molests the debtor and the said act is punishable with a maximum of 3 years imprisonment and fine.
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