Money lenders charging high interest can we stop them legally

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As per the norms, the maximum interest rate in case of secured loan should be 14 per cent per annum and unsecured loan 16 per cent per annum. The private financial institutions or moneylenders should not violate the norms, the release stated.

According to the Department, the Cooperative Societies would confiscate the security deposits/cancel licenses of the moneylenders if they charge high interest rate from the borrowers.

The Department will also book criminal cases against the moneylenders if they operate financial business without obtaining necessary permissions, the release warned.

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