Yes. Any person or organisation lending money in Tamil Nadu must obtain a Certificate of Registration before giving or recovering loans (except Banks, Non-Banking Financial Companies registered with the Reserve Bank of India, Co-operative Banks and Co-operative societies) (Section 5(1) of the Act)
You must apply online through this portal with the required documents and fees. (Section 5(2) of the Act, Rule 3)
The Certificate of Registration is valid for 3 years from the date of issue. (Section 5(5) of the Act, Rule 4(8))
If no decision is taken within the prescribed time, the registration certificate will be auto-generated online after 60 days. (Section 5(4) of the Act, Rule 4(7))
Yes. But the entity must shall furnish the details of such registration in Form VII through the Portal to the Registering Authority of the new district through the portal before starting business there. ( Proviso to Section 5(5) of the Act, Rule 6)
No. Coercive actions are strictly prohibited. These include: (a) obstructing or using violence to or insulting or intimidating the borrower or any of his family members; or (b) persistently following the borrower or any of his family members from place to place, or interfering with any property owned or used by them, or depriving them of or hindering them in the use of, any such property; or (c) frequenting the house or other place where the borrower resides or works, or carries on business, or happens to be, with an intention of taking coercive action; or (d) using the service of private or outsourced or external agencies, to negotiate or urging the borrower to make payment using coercive and undue influence; or (e) seeking to take forcibly any document of the borrower which entitles him to a benefit under any Government programme, any other vital documents, articles or household belongings. (Section 20 of the Act)
Using coercive actions can lead to: * Imprisonment up to 5 years * Fine up to ₹5 lakhs * Or both (Section 21 of the Act)
No. Security cannot be taken for: * Household loans up to ₹4 lakhs * Self-Help Group loans up to ₹10 lakhs (Rule 8)
Every entity must maintain: * Cash Book - Form X * Ledger - Form XI * Loan Register - Form XII These may be maintained physically or digitally. ( Section 12 of the Act, Rule 9 & Rule 10)
Yes. Every registered entity must upload an Annual Statement on the portal each financial year within the prescribed time. Failure to upload may attract penalty. ( Section 13 & Section 19 of the Act, Rule 11)
The lender must clearly disclose: *a meaningful comparison with the terms and conditions offered by other money lending entities * Effective interest rate * Processing charges * Insurance premium * Late payment Penal charges * Loan terms and conditions Receipts must be issued for every repayment. Communication must be in Tamil. ( Section 9 of the Act, Rule 9(3))
A borrower can file a complaint with: * The Registering Authority * The local Police Station * The Ombudsperson (for civil disputes) (Section 16 & Section 17 of the Act)
Yes. If a money lending entity violates the Act or Rules, the Registering Authority may suspend or cancel the registration after inquiry.( Section 14 of the Act)
It is a punishable offence. The person may face imprisonment up to 3 years and fine up to ₹1 lakh.( Section 18 of the Act)
Yes. Most offences under this Act (except offences under section 19 and 23) are cognizable and non-bailable, meaning police can take action without prior court approval.( Section 24 of the Act)