Amendment status not verified — confirm the current text below against the official source.
( 1 ) The State Government may, from time to time, by notification in the Official Gazette , fix the maximum rates of interest to be charged by a money-lender in respect of secured loan and unsecured loan. 1 [Provided that, in the Scheduled Areas, the rates of interest to be charged by a money-lender shall be fixed by the Gram Sabha, which shall not be more than the maximum rates of interest fixed by the Government under this sub-section.] ( 2 ) No money-lender shall receive from a debtor or intending debtor any sum by way of compound interest on a loan advanced or intended to be advanced or any sum by way of interest at a rate higher than the rate fixed under sub-section ( 1 ). ( 3 ) Notwithstanding anything contained in any other law for the time being in force, a money-lender shall not charge or recover from any debtor, on account of interest, a sum greater than the amount of principal of loan whether advanced before or after commencement of this Act. ( 4 ) Notwithstanding anything contained in any other law for the time being in force, no agreement between a money-lender and a debtor for payment of interest at rates exceeding the maximum rates fixed by the State Government under sub-section ( 1 ) and no agreement in contravention of the provisions of sub-sections ( 2 ) and ( 3 ) shall be valid.