Amendment status not verified — confirm the current text below against the official source.
9[(1) The Government may, from time to time, by notification in the 10Telangana Gazette, fix the maximum rate of interest for any local area or class of business of money lending in respect of secured loans and unsecured loans. (1-a) No money-lender shall levy charges other than compound interest and expenses mentioned in sub-section (3) of this section incurred by him in respect of loans. (1-b) Whoever, being a money-lender, demands or charges or receives from a debtor interest at a rate exceeding the maximum rate fixed by the Government under sub-section (1), shall be punished with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.] (2) The parties may include a stipulation in the agreement that if the sum payable as interest is not paid on the date fixed, under the agreement the money-lender may charge simple interest on such sum by way of damages from the date of default until it is paid, at a rate not exceeding half the rate of interest payable on the principal and the interest so charged shall not, for the purposes of this Act, be deemed to be part of the interest charged in respect of the loan. (3) When property is given by way of security or mortgage nothing in this section shall prevent a money- lender from recovering the expenses incurred for investigating title to the property, the costs of stamp and expenses for registration of document and other expenses incurred which may be reasonable in the opinion of the Court, if the parties have agreed in writing to the levy and payment of such expenses, otherwise only expenses