Rate of intetest

pushpakrishna (Querist) 25 May 2017 This query is : Resolved
Dear experts
What is the legally valid interest can be charged by a money lender. Wether it is 18 percent pa or 24 percent pa.
Kindly let us know. Thanq in advance.

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Guest (Expert) 25 May 2017
The Technical Group headed by Economist Mr.S.G .Gupta had recommended the Interest Rate to be fixed and Registration of Money Lenders Mandatory

Guest (Expert) 25 May 2017
Still No Legal restriction is implemented strongly and they charge even 36% to 60% also.In some places like local vegetable markets etc the interest is 5 to 10% on daily basis

Guest (Expert) 25 May 2017
Now even the Banks are collecting exorbitant rate of interest from defaulters in various names like Penal Interest etc.

Guest (Expert) 25 May 2017
A Legal solution is yet to be arrived

Guest (Expert) 25 May 2017
Once A signed unfilled Plain Cheque is given by the borrower and that could be the end of it

Guest (Expert) 25 May 2017
What is your Actual problem please

Guest (Expert) 25 May 2017
Normally the Money lenders Interest should not exceed the 11% P.A. charged by the Banks

Guest (Expert) 25 May 2017
But it is Yet to be Legally Enforced

pushpakrishna (Querist) 25 May 2017
Dear experts
One of my friends borrowed an amount of Rs.1 lakh by giving signed an empty promissory note.when he went to repay the amount with interest at the rate of 18 percent pa as agreed at the time of trancaction the creditor demanded the amount with interest at the rate 36 p.a.failing which he wants to file a suit in the court of law.
Hence my question is the same is valid in the court of law?
Kindly advice on this with detail in view of the above.
Thanq in advance..

Rajendra K Goyal (Expert) 25 May 2017
Contractual rate or rate decided by the court would be applicable.

Court may not award 36% rate of interest.

Guest (Expert) 25 May 2017
Agree with Mr.RK Goyal Ji

Guest (Expert) 25 May 2017
Court may not award 36% interest

Guest (Expert) 25 May 2017
Well Advised by Mr .RK Goyal Ji

Sudhir Kumar, Advocate (Expert) 26 May 2017
first of all you did not introduce facts.

Mr Narasimha was kind enough to express views without facts.

now please elaborate what do you mean by "empty promissory"

please be clear if any blank note has been signed.

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