I would like to start a money lending business in hyderabad location based on secured and unsecured loans to individuals and companies. My questions 1. How to get money lender license in hyderabad, 2. How much of interest rate i can change to my clients minimum and maximum, 3. Can i lend money by way of cash transactions, 4. Can i take repayments by way of only cash from my borrowers, 5. What are the terms and conditions should mention in the loan agreement.
1. You will have to apply for such license from the RBI. For the complaisance get in touch with the officials.
2. Refer to the guidelines issued by the RBI from time to time. First get the license and then think of it,
3. yes
4. Yes
5. You need an advocate to draft such customized agreement It would be though in the nature of a Promissory Note.
You need money lender licence to carry on business of money lending in AP
2) you can charge maximum interest rate as mentioned in your state money lending act
3) you cannot lend money in cash of over Rs 20000
4) you cannot take repayment in cash of over Rs 20000
4) terms and conditions of loan agreement should mention period of loan , interest rate charged , loan repayment date , penal intetest to be charged
1. How to get money lender license in hyderabad,
ANSWER: Contact local registering authority (dept. of cooperatives, Civic body)
2. How much of interest rate i can change to my clients minimum and maximum,
ANSWER: Minimum: 0%. Maximum: 2% above the Prime Lending Rate of SBI
3. Can i lend money by way of cash transactions,
ANSWER: It shall be illegal and a criminal offence
4. Can i take repayments by way of only cash from my borrowers,
ANSWER: It shall be illegal and a criminal offence
5. What are the terms and conditions should mention in the loan agreement.
ANSWER: One of the conditions should be repayment period, date, rate of interest, legal action.
Keep Smiling .... Hemant Agarwal
I think Here respective advocates didn't got my question properly. My question are. 1. I want to start a private money lending business in Telangana state Hyderabad city local, 2. I want to start private money lending business With my own investment and some of my known people want to give some amount to me for investment purpose for particular time period. 3. I want to use my known people investment in money lending business and i need to return their investment with some interest. 4. My known people investment will comes through bank only and i should return the same investment with some interest through bank only. 5. Overall i need one professional advocate and charted accoutent service in hyderabad preferably hyderabad city area to take care of providing telangana money lending business license, to prepaire legal loan agreement, to handle ledger book and profit book maintain etc.
Dear Client,
Applicant has to visit to the nearest department of MeeSeva centre or on the official website of the department. There you will find application form of Pawn Broker License or money lending license- processing time 45dasy.
The Government may, from time to time, by notification in the Andhra Pradesh Gazette, fix the maximum rate of interest for any local area of class of business of money lending in respect of secured loans and unsecured loans.
Money can be lend in cash but have to maintain proper book of accounts.
Yes,
Agreeing will mention, rate of interest, period of loan, Post dated cheque etc.
Why do you not make your mind clear when you post your query first?
You would keep your cards closed to your chest and would expect that advocates would read your mind. Good thinking.
Lawyer would only draft money lending agreement
2) you have to obtain mone lending licence on your own accord
3) CA can handle your books of account
They are certain guidelines explained very clearly in Need for money lending legislation RBI rules, go over to clear all your doubts.
1. You have to apply for money lending licence before the revenue department, in the Form of Application for Money Lending licence.
2. The Government may, from time to time, by notification in the Andhra Pradesh Gazette, fix the maximum rate of interest for any local area of class of business of money lending in respect of secured loans and unsecured loans.
3. Cash transaction beyond certain limit is not permitted.
4. The above answer suits this too.
5. It will be your own terms that have been mutually agreed.
Overall i need one professional advocate and charted accoutent service in hyderabad preferably hyderabad city area to take care of providing telangana money lending business license, to prepaire legal loan agreement, to handle ledger book and profit book maintain etc.
There is no dearth for good advocates in Hyderabad.
You can engage an advocate from this forum too who hail from Hyderabad or practice in Hyderabad.