The The Bombay Money Lenders Act, 1946 extends to Manipur only and registration under the same is required for you to start the business of money lending.

application under the prescribed act will have to be given to the tehsildar in order to get the license.

regards

Different states have different set of rules and regulations for money lending, you need a license and permit if you earns 70% of your annual income through money lending.

According to money lending act, you cannot charge more than 21% in interest if you’re lending through the RBI regulated means. So, you cannot charge 4 % legally.

Nidhi Company is one of the category of Non Banking Financial Company (NBFC) which does not require any Reserve Bank of India (RBI) license. Nidhi Company works through its members. It can accept deposits and lends loans to its members only. So, vehicle loan can be given to its member by the Nidhi company.

The minimum capital requirement for Nidhi Company is five lacs with at least seven members needed to incorporate a company. Its upto you whether you want to go for registration under the money lenders act or want to incorporate nidhi company as it totally depends on the scope of lending activities.

4 per cent interest rate per month is usurious 

court would not direct borrowers to pay 48 per cent interest rate 

take money lender licence 

money lending is better as in nidhi you need 200 members 

A Nidhi Company is a public limited company which is formed with the only purpose of depositing, accepting and lending money only to its members.

A Nidhi Company is also a Non-Banking Financial Company (NBFC) which has been exempted from the provisions of the RBI.

You need money lender licence to carry on business of money lending in Manipur state.

 you can charge maximum interest rate as mentioned in your state money lending act..

 Nidhi Company is not allowed to do micro finance business or in other words, Nidhi Company is not allowed to provide unsecured loans to its members.

Nidhi Company can only lend a secured loan that too only to its members.

Nidhi Company works through its members. It can accept deposits and lends loans to its members only.

So, vehicle loan can be given to its member by the Nidhi company.

The interest what you propose to charge will not be maintainable in law in case of any dispute referred before court in future.

A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property. A non-banking institution which is a company and has principal business of receiving deposits under any scheme or arrangement in one lump sum or in installments by way of contributions or in any other manner, is also a non-banking financial company (Residuary non-banking company).

A company incorporated under the Companies Act, 1956 and desirous of commencing business of non-banking financial institution as defined under Section 45 I(a) of the RBI Act, 1934 should comply with the following:

i. it should be a company registered under Section 3 of the companies Act, 1956

ii. It should have a minimum net owned fund of ₹ 200 lakh. (The minimum net owned fund (NOF) required for specialized NBFCs like NBFC-MFIs, NBFC-Factors, CICs is indicated separately in the FAQs on specialized NBFCs)

If companies that are required to be registered with the Reserve Bank as NBFCs, are found to be conducting non-banking financial activity, such as, lending, investment or deposit acceptance as their principal business, without seeking registration, the Reserve Bank can impose penalty or fine on them or can even prosecute them in a court of law

For lending finance money laundering licecence is the legal requirement. Thus, the person lending money as a business should fulfill the statutory requirement otherwise liable to be prosecated under appropriate law.

Not chitfund but money lending license. Only option for an individual to carry lending business. Interest rate will be fix, You can not choose your choose rate except you can give loan on lower rate to make business.

You need money lending licence for the same and you can't charge illegal interest.  Interest charged should be as per money lenders Act