Legal Question in Banking Law in India

taken a deposits & given a loan

I living in Orissa(india) and taken a loan of Rs. 5lacs from individual of Orissa and given a loan of Rs.12 lacs to a person of Chattisgarh state. Can i given a loan without any licence or legal complicacy if yes pls. Specify me what is the limit in this transactions.


Asked on 2/03/08, 7:27 am

4 Answers from Attorneys
Homi Maratha N.N. Maratha & Co.-Advocates

Re: taken a deposits & given a loan

You can lend money commercially only if you have a Licence under the Money Lending Act.

Please consult a local lawyer who practices taxation laws.

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Answered on 2/04/08, 3:37 am
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: taken a deposits & given a loan

You can give a Friendly loan without a licence. However for money lending commercially you require a licence under the money lending Act.

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Answered on 2/03/08, 8:09 am
G. M. Gupta gmguptaandassociates

Re: taken a deposits & given a loan

you can not give loans or do any financial work without getting registered.

for different financial works there are different registrations. there is no limit as far as i know, for the business after registration but if there is any then u need to check it up. see the related acts for it.

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Answered on 2/03/08, 10:26 am

Re: taken a deposits & given a loan

Yes,you can always give friendly loan.

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Answered on 2/03/08, 11:23 am


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