money lenders
About
How to Obtaining a Money Lender License
A cash bank is somebody who loans limited quantities of cash at a higher rate of interest. The justification for charging higher rate of interest is that the moneylender faces a higher risk of default than ordinary banks because of different reasons .People who are desperately in need of money but at the same time do not have a bank account, people with bad credit histories and those who can’t get money from friends or relatives approach a money lender for credit facilities .
Factors to issue a license
Money lender permit is normally conceded by the Revenue department inside 3 to 4 months from the date of submission of the application structure. When the application is gotten, it is valid for one year. . However, there are a few factors that have to be taken into consideration while issuing/renewal/endorsement of a license:
Whether the individual has the skill to maintain a money lending business.
Whether the candidate’s reason is a well-suited spot to maintain the business.
Whether giving the authorization would be against the public interest.
Conditions for Getting a money lending lisence
As per the Money Lending Act functional in Maharastra, no money lender might direct money- lending movement besides in the locale for which he has been given a permit. The word utilized here is ‘cash loaning business.’ Cash loaning here alludes to the giving of advances in real money or kind, whether in combination with or in addition to any other business.
Who is Eligible for a Money Lender License?
While deciding if a candidate is qualified for a money recovery for lender license permit the accompanying viewpoints are thought about :
- Whether they are equipped for dealing with a firm that loans cash.
- Whether the candidate’s area is reasonable for working their firm.
- Whether allowing the permit would be in opposition to general government assistance
These aspects are taken into consideration when a license is issued, renewed, or endorsed.
What are the Documents Required to Obtain a Money Lender License?
The following documents are required to obtain a money lender license –
- Application Form
- Passport size photograph
- specimen signatures mentioning the money lenders name as well as his nominee