Liscense & doc req for small finance business


Sir, I am planning to start up a small finance business at CHENNAI of lending money to shops say for  example  B2B , finance to shop from Rs5000 to Maximum Rs10000 and collect the lended money on daily basis say for example Rs10000/100 days = Rs 100 per day collection. I want to do it properly will necessary liscense and document, can any one throw light on this. Please let us know the liscense and document required on this.

Regards,

Babu

 

 
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Retired employee.

The license is mandatory, contact /liceses PAN a local Chartered Accountant who is also an advocate for guiding you properly and helping in getting such permissions, PAN, GST numbers etc.

 
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Advocate

Most of the States have enacted law prohibiting money lending without a valid license.

 
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Thanks Venu sir for your reply, iam from Chennai could you please tell me what kind of liscense and document required to start up.

 
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Lawyer

Money lending by private persons (other than Banking and Non-Banking financial institutions) is governed by State Laws qua grant of licence, contact and consult a local prudent lawyer for professional guidance and necessary proceeding

 
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