Amendment status not verified — confirm the current text below against the official source.
Micro Finance Institutions or Money Lending Agencies or Organizations or Lender not to seek security.- No Micro Finance Institution (MFI) or Money Lending Agencies or Organizations or Lender shall seek any security from a borrower by way of pawn, pledge or other security for the loan: Provided that, any such security obtained from a borrower before the date of commencement of this Act shall forthwith stand released in favor of the borrower. Explanation: For the purpose of this Act “security” means, any form of collateral.